Is Century Plyboard overvalued or undervalued?

As of 13 June 2025, the valuation grade for Century Plyboard has moved from fair to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 88.55, an EV to EBITDA of 38.32, and a Price to Book Value of 7.23. These figures significantly exceed those of its peers, such as Greenply Industries with a PE of 45.33 and Greenpanel Industries at 23.25, both of which are categorized as attractive or very attractive.
In comparison to its industry peers, Century Plyboard's financial metrics indicate a substantial premium, suggesting that the market has priced the stock too high relative to its earnings and growth potential. While the company has shown positive returns, including a 13.01% increase over the past year compared to the Sensex's 5.61%, the elevated valuation ratios raise concerns about sustainability. Overall, Century Plyboard appears to be overvalued in the current market environment.