Is Berger Paints overvalued or undervalued?

As of 25 April 2025, Berger Paints has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 57.52, a Price to Book Value of 11.03, and an EV to EBITDA of 36.49. In comparison to its peers, Asian Paints is considered expensive with a PE of 54.97, while Kansai Nerolac is attractive with a PE of 31.09.
Despite its high valuation ratios, Berger Paints demonstrates strong performance metrics, including a ROCE of 25.07% and a ROE of 19.18%. The stock has outperformed the Sensex in recent periods, with a year-to-date return of 27.54% compared to the Sensex's 5.66%, reinforcing the narrative that the stock is fairly valued in the current market context.