Is Cheviot Company overvalued or undervalued?

As of 7 November 2025, the valuation grade for Cheviot Company has moved from very attractive to attractive. The company is currently considered undervalued, with a PE ratio of 11.32, a Price to Book Value of 1.04, and an EV to EBITDA of 9.93. In comparison, its peers such as Vardhman Textile, which has a PE ratio of 15.12, and K P R Mill Ltd, which is deemed very expensive with a PE ratio of 43.65, highlight Cheviot's relative attractiveness in the market.
Despite recent underperformance relative to the Sensex, with a year-to-date return of -12.42% compared to the Sensex's 6.50%, Cheviot's fundamentals suggest it remains a compelling investment opportunity. The company's ROCE stands at 7.56% and ROE at 9.21%, further indicating its potential for value creation in the long term.