Is Bloom Industries overvalued or undervalued?

As of 6 November 2025, Bloom Industries has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 65.27, an EV to EBIT ratio of 29.80, and a Price to Book Value of 2.75. Compared to its peers, Bloom Industries stands out with a significantly higher PE ratio than Mahamaya Steel, which has a PE of 134.94, and Neetu Yoshi, with a PE of 29.44, indicating that Bloom is trading at a premium relative to these competitors.
The company's financial performance metrics reveal a ROCE of 7.14% and an ROE of 4.22%, which further supports the overvaluation assessment given the high multiples. While Bloom Industries has shown strong returns over the long term, with a 3-year return of 51.5%, its recent performance has lagged behind the Sensex, particularly over the past year, where it reported a decline of 0.89% compared to the Sensex's gain of 3.65%. This combination of high valuation ratios and underperformance relative to the market suggests that investors may want to exercise caution.