Is ACC overvalued or undervalued?

As of 18 December 2024, the valuation grade for ACC has moved from attractive to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE ratio of 15.45, an EV to EBITDA of 10.79, and a ROCE of 12.98%.
In comparison to its peers, ACC's valuation metrics stand out favorably; for instance, UltraTech Cement is deemed very expensive with a PE ratio of 52.27, while Grasim Industries, categorized as attractive, has a PE of 43.9. Additionally, ACC's PEG ratio of 1.57 suggests that it is reasonably priced relative to its growth expectations. Despite recent underperformance relative to the Sensex, particularly over the past year, ACC's current valuation presents a compelling case for potential upside.