Is Wonder Electric. overvalued or undervalued?

As of 2 June 2025, the valuation grade for Wonder Electricals Ltd. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 142.54, an EV to EBITDA of 63.48, and a PEG ratio of 2.25, all of which are significantly higher than typical industry benchmarks.
In comparison to its peers, Wonder Electricals Ltd. stands out with a PE ratio that is markedly elevated, while its EV to EBITDA ratio also suggests a premium valuation relative to the industry average. Notably, competitors in the same sector exhibit lower valuation metrics, reinforcing the notion that Wonder Electric is priced at a premium. Despite a strong 1-year stock return of 83.6% compared to the Sensex's 7.57%, the current valuation does not justify the high price levels, suggesting that investors should exercise caution.