Is Ambuja Cements overvalued or undervalued?

Jun 30 2025 08:01 AM IST
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As of June 27, 2025, Ambuja Cements is considered very expensive and overvalued with a PE ratio of 33.87 and an EV to EBITDA of 22.47, making it an unfavorable investment at its current price of 574.00, despite a recent 7.59% stock return.
As of 27 June 2025, the valuation grade for Ambuja Cements has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 33.87, an EV to EBITDA of 22.47, and a Price to Book Value of 2.65, which indicate a premium valuation compared to its peers.

In comparison, UltraTech Cement has a significantly higher PE ratio of 56.87 and an EV to EBITDA of 30.24, while Grasim Industries is valued more attractively with a PE of 48.91 and an EV to EBITDA of 12.60. Despite Ambuja Cements' recent stock performance showing a 7.59% return over the past week compared to a 2.00% return for the Sensex, the overall valuation suggests that the stock is not a favorable investment at its current price of 574.00.
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