Is Forbes Precision overvalued or undervalued?

As of 30 October 2025, Forbes Precision's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued based on its high price multiples. Key ratios include a PE ratio of 34.37, an EV to EBITDA ratio of 18.53, and a Price to Book Value of 5.73.
In comparison to peers, Forbes Precision's PE ratio is notably lower than Kaynes Tech at 143.56 and Honeywell Auto at 63.59, both of which are also classified as very expensive. However, the company's valuation remains elevated relative to its industry, suggesting it may not justify its current price. Additionally, Forbes Precision has underperformed against the Sensex over the past year, with a stock return of -35.74% compared to the Sensex's 5.58%, reinforcing the notion of its overvaluation.