Energy Development Company — Peer Comparison
How the peer fair value is calculated and which companies were used as benchmarks.
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Sign inPeer selection
Peers are selected from the same Power generation industry. 6 companies were matched as valid comparables.
Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.
Peer comparison table
Power generation · 6 peers · sector medians shown
| Company | Mkt Cap | P/E | P/B | EV/EBITDA | ROE | Net Margin | Rev CAGR 3y |
|---|---|---|---|---|---|---|---|
Energy Development Company ENERGYDEV · you | ₹71 Cr | -9.3× | 0.4× | — | -4.7% | -4.0% | — |
| Sector median | — | 26.4× | 1.2× | — | 0.1% | 6.3% | -8.7% |
| GVK Power & Infrastructure Ltd GVKPIL | ₹373 Cr | — | 0.4× | — | -0.1% | — | — |
| WAAREE TECHNOLOGIES LIMITED WAAREE | ₹236 Cr | -56.6× | — | — | — | — | — |
| Surana Telecom and Power Limited SURANAT&P | ₹225 Cr | 7.4× | 1.6× | — | 22.1% | 6.3% | — |
| Indowind Energy Ltd. INDOWIND | ₹142 Cr | 882.0× | 0.5× | — | 0.1% | 0.2% | — |
| Globus Constructors & Developers Limited GLOBUSCON | ₹122 Cr | -615.0× | 25.6× | — | -3.4% | — | — |
| Karma Energy Limited KARMAENG | ₹45 Cr | 45.5× | 1.2× | — | 2.6% | 10.8% | -8.7% |
Energy trades at a discount to sector peers on P/E (-9.3× vs median 26.4×). This may signal undervaluation — or reflect lower expected growth or higher perceived risk versus the peer group.
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Sign inWhy median? Why these weights?
Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.
Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.
Limitations of peer comparison
Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.
The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.