Is Blue Star overvalued or undervalued?

As of 8 May 2025, the valuation grade for Blue Star has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 56.19, an EV to EBITDA of 36.80, and a ROCE of 28.75%.
In comparison to peers, Voltas is also fairly valued with a PE of 49.99, while Johnson Controls is considered expensive with a PE of 80.2. Despite recent stock performance showing a year-to-date decline of 26.25% compared to a 5.59% gain in the Sensex, Blue Star's long-term performance remains strong, with a 3-year return of 225.50%.