Is Synergy Green overvalued or undervalued?

As of 16 June 2025, the valuation grade for Synergy Green moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 49.60, an EV to EBITDA of 17.97, and a PEG ratio of 1.51. In comparison to its peers, Bharat Forge has a higher PE ratio of 61.06 and an EV to EBITDA of 24.92, while CIE Automotive, which is also attractive, shows a significantly lower PE ratio of 21.42 and an EV to EBITDA of 12.33.
Synergy Green's strong performance is further highlighted by its return metrics, with a 1-year stock return of 62.15% compared to the Sensex return of 6.24%. This outperformance reinforces the valuation story, suggesting that the market may be underestimating the company's growth potential in the castings and forgings industry.