Is Bright Brothers overvalued or undervalued?

As of 14 November 2025, Bright Brothers' valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 19.78, an EV to EBITDA of 7.28, and a PEG ratio of 0.24, which suggests that the stock is priced reasonably relative to its growth potential.
In comparison to its peers, Bright Brothers' PE ratio is significantly lower than that of Supreme Industries at 55.55 and Astral at 79.91, both of which are categorized as very expensive. Additionally, while Bright Brothers shows a solid ROCE of 13.09% and ROE of 9.97%, its recent stock performance has lagged behind the Sensex, particularly over the past year, where it returned -8.20% compared to the Sensex's 9.00%. This underperformance, alongside its attractive valuation metrics, reinforces the conclusion that Bright Brothers is fairly valued in the current market context.