Is TRF overvalued or undervalued?

As of 17 September 2025, the valuation grade for TRF has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 17.72, an EV to EBITDA of 12.06, and a Price to Book Value of 5.16.
In comparison to its peers, TRF's valuation metrics are notably lower than those of Tube Investments, which has a PE Ratio of 100.91 and an EV to EBITDA of 33.97, and Rail Vikas, which is valued at 63.09 on the PE front. While TRF has shown strong ROE at 30.91%, the negative capital employed reflected in its EV to Capital Employed ratio of -25.24 raises concerns. Additionally, despite recent stock performance showing a 25.10% return over the past week compared to a modest 1.56% return for the Sensex, the longer-term outlook remains weak with a year-to-date decline of 10.45% against a 5.83% gain for the index.