Is Airo Lam overvalued or undervalued?

As of 21 July 2025, Airo Lam's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 60.74, an EV to EBITDA of 8.05, and a Price to Book Value of 2.49, which suggest that while the company has a high earnings multiple, its valuation relative to earnings before interest, taxes, depreciation, and amortization appears reasonable compared to peers.
In comparison to its industry peers, Airo Lam's PE Ratio is lower than that of Metro Brands at 93.84 and Bata India at 67.25, both of which are categorized as expensive. Additionally, Airo Lam's EV to EBITDA ratio of 8.05 is more attractive than V-Guard Industries' 34.52, reinforcing its competitive positioning. Despite a recent decline in stock performance relative to the Sensex, particularly over the past year, Airo Lam's long-term performance remains strong, with a 5-year return of 449.48%, suggesting potential for future growth.