Is Cheviot Company overvalued or undervalued?

As of 14 November 2025, Cheviot Company's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 12.06, a Price to Book Value of 0.97, and an EV to EBITDA of 8.24. In comparison to its peers, Cheviot's valuation metrics are significantly lower than K P R Mill Ltd, which has a PE ratio of 43.91, and Swan Corp, with a PE ratio of 22.47, highlighting its relative attractiveness in a sector where some competitors are deemed very expensive.
Despite this fair valuation, Cheviot has underperformed against the Sensex over various time frames, with a year-to-date return of -12.42% compared to the Sensex's 8.22%. This underperformance, coupled with a modest dividend yield of 0.44% and a ROE of 8.06%, suggests that while the company may not be overvalued, it faces challenges in generating returns that align with broader market performance.