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 financial metrics. Key ratios include a PE Ratio of 63.44, an EV to EBITDA of 38.26, and a Price to Book Value of 2.41, all of which are significantly higher than those of its peers.
In comparison, Whirlpool India, which has an attractive rating, shows a PE Ratio of 46.29 and an EV to EBITDA of 25.38, while TTK Prestige, rated fair, has a PE of 53.89 and an EV to EBITDA of 34.53. These comparisons indicate that Eureka Forbes is trading at a premium relative to its industry peers. Additionally, the company's stock has underperformed against the Sensex in the year-to-date period, with a return of -4.81% compared to the Sensex's 4.05%, reinforcing the notion that it may be overvalued at its current price of 550.45.