Is Sterlite Tech. overvalued or undervalued?

As of 29 August 2025, Sterlite Technologies has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of -429.96, a Price to Book Value of 2.81, and an EV to EBITDA ratio of 13.85. Notably, its Return on Capital Employed (ROCE) stands at 3.51%, while the Return on Equity (ROE) is at -3.57%, indicating some challenges in profitability.
In comparison to its peers, Sterlite Tech's valuation metrics appear more favorable than Polycab India, which has a PE ratio of 48.22 and is categorized as very expensive, and Havells India, which has a PE of 67.76 and is also rated fair. While Sterlite Tech has shown a year-to-date return of 33.77%, outperforming the Sensex's 2.14%, its longer-term performance over three and five years has lagged behind the index, suggesting volatility and potential risks ahead.