Is Galaxy Surfact. overvalued or undervalued?

As of 19 May 2025, the valuation grade for Galaxy Surfactants Ltd. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 27.56, an EV to EBITDA of 16.73, and a PEG ratio of 24.15, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Galaxy Surfactants Ltd. has a higher PE ratio than many competitors in the industry, which typically trade at lower multiples. For instance, if we consider a peer like Company X with a PE of 20, it highlights the relative overvaluation of Galaxy. Additionally, the company's recent stock performance shows a 1-month return of 16.4%, significantly outperforming the Sensex's 3.84% return, but this is overshadowed by a year-to-date decline of 4.74% compared to the Sensex's gain of 5.58%. This performance reinforces the notion that the stock may be overvalued in the current market context.