Is Airo Lam overvalued or undervalued?

As of 30 June 2025, Airo Lam's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company appears to be fairly valued based on its current metrics, with a PE ratio of 61.89, an EV to EBITDA of 8.15, and a ROE of 3.42%. Compared to its peers, Airo Lam's PE ratio is lower than Metro Brands at 89.42 and higher than V-Guard Industries at 53.81, which further supports the conclusion of fair valuation.
In terms of performance, Airo Lam has experienced a significant return of 24.7% over the past month, outperforming the Sensex's 3.10% return, although it has underperformed on a year-to-date basis with a decline of 8.93% compared to the Sensex's gain of 7.92%. Overall, Airo Lam is fairly valued within its industry, with key ratios reflecting a balanced position relative to its peers.