Is ABS Marine overvalued or undervalued?

As of 4 July 2025, ABS Marine's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 19.20, an EV to EBITDA of 14.41, and a ROE of 21.61%. In comparison to its peers, GE Shipping Co has a significantly lower PE ratio of 6.29, while S C I boasts a more attractive valuation with a PE of 12.19, highlighting ABS Marine's relatively higher valuation metrics.
Despite the fair valuation, ABS Marine has experienced a notable decline in stock price over the past year, dropping 49.33%, while the Sensex has returned 4.77% during the same period. This disparity may suggest that the market has overreacted to certain challenges faced by the company, reinforcing the notion that it could be undervalued relative to its potential, especially given its strong ROCE of 26.68%.