Is Forbes Precision overvalued or undervalued?

As of 11 August 2025, Forbes Precision's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 32.30, the Price to Book Value is 5.59, and the EV to EBITDA is 17.60, all of which are relatively high compared to industry standards.
In comparison to its peers, Forbes Precision's PE ratio is significantly higher than Genus Power's 28.13 and much lower than Kaynes Tech's 123.4, which is categorized as very expensive. The PEG ratio of 0.00 suggests that the stock may not be growing at a rate that justifies its current price. Recent performance shows that Forbes Precision has underperformed the Sensex, with a year-to-date return of -35.24% compared to the Sensex's 3.15%. Overall, the analysis indicates that Forbes Precision is overvalued in the current market environment.