Is Eureka Forbes overvalued or undervalued?

As of 2 July 2025, Eureka Forbes has moved from a very attractive to a fair valuation grade. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 70.26, an EV to EBITDA of 41.59, and a PEG ratio of 1.46. These figures indicate that the stock is priced significantly higher than its earnings and growth potential would suggest.
In comparison to its peers, Eureka Forbes' PE ratio is notably higher than Whirlpool India's PE of 49.70 and Symphony's PE of 45.72, both of which are also rated as fair. Additionally, while Eureka Forbes has a ROCE of 5.03% and an ROE of 3.66%, these returns are relatively low compared to industry standards, further supporting the overvaluation assessment. Despite a strong one-year stock return of 17.54% compared to the Sensex's 5.00%, the current valuation metrics suggest that investors should approach with caution.