Is Eureka Forbes overvalued or undervalued?

As of 22 August 2025, Eureka Forbes has moved from an attractive to a fair valuation grade. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 63.44, an EV to EBITDA of 38.26, and a PEG ratio of 1.40. In comparison, peers such as Whirlpool India and IFB Industries have more favorable valuations, with PE ratios of 46.29 and 55.37, respectively, indicating that Eureka Forbes is trading at a premium relative to its industry.
The company's return metrics also reflect its overvaluation, with a ROCE of only 5.03% and an ROE of 3.66%, which are significantly lower than those of its peers. While Eureka Forbes has shown a positive return of 8.36% over the past year, it has underperformed the Sensex, which returned 0.31% in the same period. Overall, the combination of high valuation ratios and lower return metrics suggests that Eureka Forbes is currently overvalued in the market.