Is Titagarh Rail overvalued or undervalued?

As of 20 June 2025, the valuation grade for Titagarh Rail has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 42.44, an EV to EBITDA of 27.32, and a Price to Book Value of 4.70, all of which are significantly higher than industry averages.
In comparison to its peers, Titagarh Rail's PE Ratio exceeds that of Rites, which stands at 34.28, and Texmaco Rail, which is at 26.03, highlighting its relative overvaluation. Additionally, while Texmaco Rail is categorized as very attractive, Titagarh Rail's PEG Ratio is notably at 0.00, suggesting no growth expectations are priced in. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -21.61% compared to the Sensex's 5.46%, further reinforcing the notion of overvaluation.