Is Va Tech Wabag overvalued or undervalued?
As of July 24, 2025, Va Tech Wabag is considered overvalued with a valuation grade of expensive, reflected in its high PE ratio of 34.54 and PEG ratio of 1.71, despite strong past performance.
As of 24 July 2025, the valuation grade for Va Tech Wabag has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios highlight this position, with a PE ratio of 34.54, an EV to EBITDA of 23.11, and a Price to Book Value of 4.77. In comparison to peers, Larsen & Toubro, which is rated attractive, has a lower PE ratio of 32.6 and an EV to EBITDA of 16.63, further emphasizing the relative overvaluation of Va Tech Wabag.The company's current valuation suggests it is overvalued, especially when considering its high PEG ratio of 1.71. While Va Tech Wabag has shown strong returns over the past year, outperforming the Sensex with a return of 21.62% compared to 2.54%, the high valuation metrics indicate that investors may be pricing in excessive growth expectations.
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