Is Denta Water overvalued or undervalued?

As of 15 July 2025, the valuation grade for Denta Water has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 15.61, an EV to EBITDA of 9.25, and a ROCE of 32.05%.
In comparison to its peers, Denta Water's PE Ratio is notably lower than that of Thermax, which stands at 65.26, and BEML Ltd, with a PE of 65.7, both categorized as very expensive. This suggests that while Denta Water is overvalued, it is less so than some of its peers. Additionally, despite the overvaluation, Denta Water has shown a strong performance in the past week with a return of 8.4%, contrasting with a decline in the Sensex by 1.36%.