Is Finolex Cables overvalued or undervalued?

As of 24 March 2025, the valuation grade for Finolex Cables has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued. Key ratios include a PE ratio of 21.15, an EV to EBITDA of 22.70, and a dividend yield of 0.83%.
In comparison to its peers, Finolex Cables has a lower PE ratio than Havells India, which stands at 64.84, and Polycab India at 45.49, both of which are considered expensive. However, it is on par with R R Kabel, which also has a fair valuation but a significantly higher PE ratio of 51.13. Notably, while Finolex Cables has underperformed in the year-to-date with a return of -16.41% compared to the Sensex's 5.59%, it has shown impressive long-term growth with a 3-year return of 153.56%.