Is Century Plyboard overvalued or undervalued?

As of 20 June 2025, Century Plyboard's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 84.63, an EV to EBITDA of 36.76, and a Price to Book Value of 6.91. In comparison to its peers, Greenply Industries, which has a PE ratio of 43.41 and an EV to EBITDA of 18.81, and Greenpanel Industries, boasting a PE of 22.84 and an EV to EBITDA of 13.46, Century Plyboard appears to be trading at a premium.
Despite its fair valuation, Century Plyboard has underperformed relative to the Sensex in the short term, with a year-to-date return of -0.31% compared to the Sensex's 5.46%. This underperformance, coupled with its high valuation ratios, suggests that while the company is not overvalued, it may face challenges in achieving significant growth relative to its peers in the near future.