Is Eureka Forbes overvalued or undervalued?

As of 27 June 2025, Eureka Forbes has moved from a fair to a very attractive valuation grade, indicating a significant shift in its perceived value. The company is currently undervalued, with a PE ratio of 1.81, a Price to Book Value of 0.07, and an EV to EBITDA ratio of 0.03. These ratios suggest that the stock is trading at a substantial discount compared to its intrinsic value.
In comparison to its peers, Eureka Forbes stands out with its very attractive valuation, especially when juxtaposed with Whirlpool India, which has a PE ratio of 50.19, and TTK Prestige, which is considered expensive with a PE ratio of 47.05. Notably, while Eureka Forbes has shown a strong return of 24.46% over the past year, the Sensex has only returned 6.08%, reinforcing the narrative that the stock may be undervalued relative to its performance.