Is Thermax overvalued or undervalued?

As of 20 June 2025, Thermax's valuation grade has moved from very expensive to expensive, indicating a slight easing in perceived overvaluation. The company is currently considered overvalued. Key ratios include a PE ratio of 64.21, an EV to EBITDA of 43.77, and a Price to Book Value of 8.25.
In comparison with peers, BEML Ltd has a PE ratio of 65.88 and an EV to EBITDA of 38.55, while Praj Industries is relatively more attractive with a PE ratio of 45.75. Despite the recent downturn in stock performance, with a year-to-date return of -16.03% compared to the Sensex's 5.46%, Thermax's high valuation metrics suggest that it remains overpriced in the current market context.