Is Eureka Forbes overvalued or undervalued?

As of 29 October 2025, Eureka Forbes has moved from an attractive to a fair valuation grade. The company is currently considered overvalued based on its high PE ratio of 65.17, an EV to EBITDA ratio of 39.34, and a Price to Book Value of 2.48. These figures indicate that the stock is priced significantly higher compared to its earnings and book value, suggesting a premium that may not be justified by its financial performance. In comparison to its peers, Whirlpool India has a PE ratio of 50.33 and an EV to EBITDA of 27.99, while LG Electronics, which does not qualify for a valuation grade, has a PE of 50.98 and an EV to EBITDA of 34.92. This highlights that Eureka Forbes is trading at a premium relative to these competitors, which further supports the conclusion of overvaluation. Additionally, while the stock has shown a return of 4.99% over the past year, it has underperformed against the Sensex, which returned 5.76% in the same period.