Is DCW overvalued or undervalued?

As of 9 May 2025, the valuation grade for DCW has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a PE ratio of 80.51, an EV to EBITDA of 13.66, and a ROCE of 7.55%.
In comparison to its peers, DCW's PE ratio is significantly higher than Godrej Industries, which has a PE of 46.63 and is rated as attractive, while Solar Industries is deemed very expensive with a PE of 123.77. Despite its high valuation metrics, DCW's recent stock performance has outpaced the Sensex, particularly over the past year, where it returned 61.76% compared to the Sensex's 7.61%. This suggests that while DCW is fairly valued, it has shown strong growth relative to the broader market.