Is Atul overvalued or undervalued?

As of 9 July 2025, Atul's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 45.96, an EV to EBITDA of 23.62, and a Price to Book Value of 3.97.
In comparison to its peers, Atul's PE ratio is significantly higher than Godrej Industries, which has a PE of 39.26 and is rated attractive. Other peers like Solar Industries and Gujarat Fluorochemicals are categorized as very expensive, with PE ratios of 123.39 and 69.05, respectively. Despite a recent positive stock performance, with a year-to-date return of 8.55% compared to the Sensex's 6.91%, Atul's elevated valuation metrics suggest it remains overvalued in the current market context.