Is Garware Hi Tech overvalued or undervalued?

As of 21 April 2025, Garware Hi Tech's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 31.43, a Price to Book Value of 4.39, and an EV to EBITDA ratio of 22.16. These figures suggest that investors are paying a premium for the stock compared to its earnings and book value.
In comparison to its peers, Garware Hi Tech's valuation stands out unfavorably. For instance, AGI Greenpac, classified as very attractive, has a PE ratio of 17.02 and an EV to EBITDA of 9.19, while Uflex, rated as attractive, shows a PE of 13.56 and an EV to EBITDA of 6.99. This stark contrast highlights that Garware Hi Tech is trading at a much higher valuation than its competitors, reinforcing the conclusion of being overvalued. Despite a strong historical performance, including a 119.42% return over the past year, the current valuation metrics suggest that the stock may not be justified at its current price.