Is Carborundum Uni. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Carborundum Universal has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 60.09, a Price to Book Value of 4.95, and an EV to EBITDA of 28.78. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Carborundum Universal's valuation stands out as particularly high; for instance, Grindwell Norton has a PE ratio of 46.67 and an EV to EBITDA of 18.66, while Wendt India shows a PE of 60.82 but with a much higher EV to EBITDA of 37.14. This stark contrast further reinforces the notion that Carborundum Universal is overvalued. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -28.41%, significantly lagging behind the Sensex's gain of 6.50% in the same period.