Is Emami Paper overvalued or undervalued?

As of 20 December 2024, the valuation grade for Emami Paper has moved from attractive to very attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 23.14, an EV to EBITDA of 8.70, and a Price to Book Value of 0.75, which suggests a favorable valuation compared to its peers.
In comparison to its industry peers, Emami Paper's PE ratio is higher than that of JK Paper at 15.48 and West Coast Paper at 10.55, indicating that while it is priced higher, its overall valuation remains compelling. The company's recent stock performance has lagged behind the Sensex over the past year, with a return of -9.54% compared to the Sensex's 7.63%, reinforcing the notion that the stock may be undervalued despite its recent grade change.