Is Times Green Ener overvalued or undervalued?

As of 31 October 2025, Times Green Ener has moved from a fair valuation to very expensive. The company is currently overvalued, as indicated by its high PE ratio of 69.64 and EV to EBIT and EV to EBITDA both at 30.50. In comparison to its peers, NTPC has a significantly lower PE ratio of 13.75 and an EV to EBITDA of 10.50, while Tata Power Co. shows a PE of 31.33 and an EV to EBITDA of 12.54, highlighting the premium that Times Green Ener commands despite its low ROCE of 2.39% and ROE of 1.17%.
The valuation metrics suggest that Times Green Ener is not justified at its current price of 99.94, especially when considering its recent stock performance against the Sensex. Although it has outperformed the Sensex over the past year with a return of 16.21% compared to 5.73%, the underlying financial ratios indicate that the stock is priced too high relative to its earnings potential and peer performance.