Is Waa Solar overvalued or undervalued?

As of 14 November 2025, Waa Solar's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market position. The company is currently overvalued, with a PE ratio of 64.16, an EV to EBITDA ratio of 25.24, and a ROE of only 0.66%. In comparison, its peers such as NTPC, which has a PE of 13.41 and an EV to EBITDA of 10.35, and Tata Power Co., with a PE of 30.72 and an EV to EBITDA of 13.22, highlight the significant premium Waa Solar is trading at.
The company's financial metrics suggest a lack of profitability and efficiency, as evidenced by a low ROCE of 1.23% and a PEG ratio of 0.00. This valuation is further underscored by its recent stock performance, which has underperformed the Sensex, with a year-to-date return of -50.34% compared to the Sensex's 8.22%. Overall, Waa Solar's current valuation does not align with its financial performance, reinforcing the conclusion that it is overvalued.