Is Fedders Holding overvalued or undervalued?

As of 7 November 2025, Fedders Holding's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a PE ratio of 34.16, an EV to EBITDA ratio of 143.84, and a ROE of 5.86%. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Fedders Holding's valuation metrics are notably higher; for instance, Bajaj Finance has a PE ratio of 38.09 and an EV to EBITDA of 20.2, while Life Insurance boasts a much lower PE of 11.44 and an EV to EBITDA of 0.37, highlighting the disparity in valuation within the industry. The stock has underperformed significantly against the Sensex, with a year-to-date return of -35.87% compared to the Sensex's 6.50%, reinforcing the notion that Fedders Holding is overvalued in the current market context.