Is Sterlite Tech. overvalued or undervalued?

As of 16 September 2025, the valuation grade for Sterlite Technologies has moved from fair to expensive. The company is currently overvalued, with a PE ratio of -464.31, a Price to Book Value of 3.03, and an EV to EBITDA of 14.72. These ratios indicate significant financial distress, particularly highlighted by the negative PE ratio and a low ROE of -3.57%, suggesting inefficiencies in generating returns for shareholders.
In comparison to its peers, Sterlite's valuation metrics are considerably less favorable. For instance, Polycab India has a PE ratio of 50.25 and an EV to EBITDA of 33.71, while Havells India shows a PE of 71.63 with an EV to EBITDA of 47.29, both indicating a premium valuation in the sector. Despite a strong year-to-date return of 44.75% compared to the Sensex's 5.43%, the overall financial indicators suggest that Sterlite Technologies is not positioned favorably in the market.