Is Eureka Forbes overvalued or undervalued?

As of 14 November 2025, Eureka Forbes has moved from a fair to an attractive valuation grade. The company is currently considered overvalued based on its high PE ratio of 61.32, EV to EBIT of 47.83, and EV to EBITDA of 37.72. In comparison to peers, LG Electronics has a PE ratio of 49.87 and Whirlpool India has a PE ratio of 46.79, both of which indicate that Eureka Forbes is trading at a premium relative to these competitors.
Despite the attractive valuation grade, the company's return on capital employed (ROCE) stands at only 5.42% and return on equity (ROE) at 4.10%, which raises concerns about its profitability relative to its high valuation metrics. Additionally, while the stock has outperformed the Sensex over the past week and month, its longer-term performance shows a decline of 1.26% over the past year compared to the Sensex's 9% increase, suggesting potential challenges ahead.