Is Andhra Paper overvalued or undervalued?

As of 12 June 2025, the valuation grade for Andhra Paper has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 17.90, an EV to EBITDA of 6.99, and a Price to Book Value of 0.82, which suggest that the stock is not priced favorably compared to its earnings and asset value.
In comparison to peers, JK Paper, which is rated very attractive, has a PE Ratio of 15.35 and an EV to EBITDA of 8.31, while West Coast Paper, rated fair, shows a PE Ratio of 11.1 and an EV to EBITDA of 5.57. These comparisons highlight that Andhra Paper's valuation is higher relative to its peers, reinforcing the conclusion of overvaluation. Additionally, despite a recent positive return of 4.59% over the past week, the company's year-to-date performance shows a decline of 15.59%, further indicating potential concerns regarding its current valuation.