Is Synergy Green overvalued or undervalued?

As of 29 August 2025, Synergy Green's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 47.94, an EV to EBIT ratio of 23.37, and a ROE of 16.10%. In comparison to peers, Bharat Forge has a higher PE ratio of 51.54, while CIE Automotive presents a much lower EV to EBITDA of 10.96, highlighting the varying valuations within the industry.
Despite the recent downgrade in valuation, Synergy Green has shown strong performance, with a year-to-date return of 13.73%, significantly outperforming the Sensex's 2.14% return. The company's PEG ratio of 1.54 suggests that while it is not undervalued, it is also not excessively overvalued compared to its growth prospects. Overall, the current valuation reflects a balanced perspective on Synergy Green's market position and future potential.