Is Apollo Pipes overvalued or undervalued?

As of 5 June 2025, Apollo Pipes has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 60.35, an EV to EBITDA of 20.12, and a Price to Book Value of 2.49, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Apollo Pipes' PE ratio is significantly higher than the industry average, reflecting its expensive valuation. For instance, while Apollo Pipes has a PE of 60.35, other companies in the plastic products industry may have lower ratios, indicating that Apollo is priced at a premium. Additionally, the company has shown a poor performance relative to the Sensex, with a 1-year return of -35.44% compared to the Sensex's 7.61%, further supporting the notion that it may be overvalued at its current price of 424.55.