Is Voltas overvalued or undervalued?

As of 7 November 2025, the valuation grade for Voltas has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios highlight this assessment, with a PE ratio of 67.50, an EV to EBITDA of 49.98, and a Price to Book Value of 6.71.
In comparison to peers, Voltas' valuation stands out, with Blue Star showing a more attractive PE ratio of 67.17 and an EV to EBITDA of 46.51. Johnson Controls Hit is also classified as expensive with a PE ratio of 117.82, further emphasizing the premium at which Voltas is trading. Notably, Voltas has underperformed relative to the Sensex, with a year-to-date return of -26.19% compared to the Sensex's 6.50%, reinforcing the notion that the stock may be overpriced in the current market environment.