Is Forbes Precision overvalued or undervalued?

As of 6 November 2025, Forbes Precision's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 33.00, an EV to EBITDA of 17.33, and a Price to Book Value of 5.69, which are significantly higher than its peers. For instance, Genus Power, a peer comparison, has a PE ratio of 26.97, while Cyient DLM, considered attractive, has a PE of 43.26.
In comparison to its industry peers, Forbes Precision's ratios suggest it is trading at a premium. The PEG ratio stands at 0.00, indicating no growth expectations factored into its valuation, which further supports the overvaluation assessment. Additionally, the company's stock has underperformed the Sensex over the past year, with a return of -39.84% compared to the Sensex's 3.65%, reinforcing the notion that it may be overvalued in the current market environment.