Is Airo Lam overvalued or undervalued?

As of 18 July 2025, Airo Lam's valuation grade has moved from attractive to fair, indicating a reassessment of its market position. The company appears to be overvalued at this time. Key ratios include a PE ratio of 61.83, an EV to EBITDA of 8.14, and a ROE of 3.42%.
In comparison to peers, Airo Lam's PE ratio is notably higher than V-Guard Industries at 56.01 and lower than Metro Brands, which is classified as very expensive at 95.29. The current market price of 117.47 is significantly above its 52-week low of 83.50, yet the stock has underperformed against the Sensex over the past year, with a return of -14.02% compared to the Sensex's 0.68%. This suggests that while the stock has had strong long-term performance, its current valuation does not justify the price given the recent trends and peer comparisons.