Is Fedders Holding overvalued or undervalued?

As of 17 November 2025, Fedders Holding's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial ratios. Notably, it has a PE ratio of 34.63, an EV to EBITDA ratio of 87.90, and a ROE of 4.17%.
When compared to peers, Fedders Holding's valuation stands out, particularly against Bajaj Finserv, which has a PE of 34.31, and Life Insurance, which boasts a much lower PE of 11.33. This suggests that Fedders Holding's valuation is not justified by its earnings potential relative to its peers. Additionally, the company's recent stock performance has lagged significantly behind the Sensex, with a year-to-date return of -36.88% compared to the Sensex's 8.72%, reinforcing the view that it is currently overvalued.