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 towards overvaluation. The company is currently assessed as overvalued, primarily due to its high PE ratio of 64.16, which significantly exceeds that of its peers. The EV to EBITDA ratio stands at 25.24, while the EV to EBIT ratio is 51.68, both suggesting that the company is trading at a premium compared to industry standards.
In comparison to peers, NTPC, which is rated attractive, has a PE ratio of 13.41 and an EV to EBITDA of 10.35, highlighting the disparity in valuation metrics. Other competitors like Adani Green and Tata Power are also marked as very expensive and attractive, respectively, with PE ratios of 78.28 and 30.72. Furthermore, Waa Solar's recent stock performance has been underwhelming, with a year-to-date return of -50.34%, contrasting sharply with the Sensex's positive return of 8.22% during the same period, reinforcing the notion of overvaluation.