Is Atul overvalued or undervalued?

As of 17 November 2025, Atul's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 32.73, an EV to EBITDA of 17.57, and a Price to Book Value of 3.00. These metrics suggest that Atul is trading at a premium compared to its peers.
In comparison to its industry peers, Atul's PE ratio is significantly lower than that of Solar Industries, which stands at 95.31, but higher than Godrej Industries at 37.63. Furthermore, Atul's PEG ratio of 0.75 is more favorable than that of Gujarat Fluoroch at 0.88, indicating potential growth relative to its price. Despite a recent positive stock performance with a 5.49% return over the past week compared to a 1.69% return for the Sensex, the overall trend shows that Atul has underperformed the index over the longer term, reinforcing the assessment of overvaluation.