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 market perception. 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 ratio of 28.78. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with peers, Carborundum's valuation metrics stand out unfavorably. 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 a much higher EV to EBITDA of 37.14. Additionally, the company's recent performance has been lackluster, with a year-to-date return of -28.41% compared to the Sensex's positive return of 6.50%. This further reinforces the notion that Carborundum Universal is overvalued in the current market context.