Is AMD Industries overvalued or undervalued?

As of 30 May 2025, AMD Industries has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, primarily due to its compelling financial ratios. The PE ratio stands at 97.75, which is high, but the EV to EBITDA ratio is a more favorable 7.40, indicating a reasonable valuation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the PEG ratio is at 0.62, suggesting that the stock is undervalued relative to its growth potential.
In comparison to its peers, AMD Industries shows a stark contrast with Garware Hi Tech, which is deemed very expensive with a PE ratio of 31.43, and Uflex, which has a PE ratio of 13.56 and is classified as attractive. The EV to Sales ratio for AMD is 0.66, further supporting its undervalued status when compared to the industry. Notably, while AMD has underperformed the Sensex over the past year with a return of -25.87% compared to the Sensex's 7.57%, its long-term performance over five years at 200.65% indicates significant potential for recovery and growth.