Is Cheviot Company overvalued or undervalued?

As of 7 November 2025, Cheviot Company has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. The PE ratio stands at 11.32, while the EV to EBITDA ratio is 9.93, and the Price to Book Value is 1.04, indicating a favorable valuation relative to its earnings and assets.
In comparison to its peers, Cheviot Company’s valuation appears more appealing than K P R Mill Ltd, which is classified as very expensive with a PE ratio of 43.65, and Trident, which is rated fair with a PE ratio of 32.8. Additionally, the PEG ratio for Cheviot is 0.00, suggesting strong growth potential without the corresponding price increase. Despite recent underperformance against the Sensex, particularly in the year-to-date and one-year periods, the long-term outlook remains positive, with a 5-year return of 62.63%.