Is Bata India overvalued or undervalued?

As of 6 February 2025, Bata India has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 67.63, an EV to EBITDA ratio of 22.33, and a dividend yield of 1.81%. In comparison, its peer Metro Brands has a significantly higher PE ratio of 95.29, while V-Guard Industries, which is rated fair, has a PE ratio of 52.15.
Despite the attractive valuation, Bata India has underperformed relative to the Sensex, with a year-to-date return of -11.31% compared to the Sensex's 5.61%. This discrepancy highlights the potential for recovery and growth in the company's stock price, reinforcing the notion that it is currently undervalued in the market.