Is Garware Hi Tech overvalued or undervalued?

As of 14 November 2025, Garware Hi Tech has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 27.89, an EV to EBITDA of 19.41, and a Price to Book Value of 3.48, all of which are significantly higher than its peers. For instance, AGI Greenpac, which is rated attractive, has a PE of 14.45 and an EV to EBITDA of 9.00, highlighting the disparity in valuation.
In comparison to its peers, Garware Hi Tech's PEG ratio of 13.02 also stands out, indicating a premium valuation relative to companies like Uflex, which has a PEG of 0.75. Despite recent stock performance showing a strong 1-week return of 10.26% compared to the Sensex's 1.62%, the overall trend indicates that the stock has underperformed over the year with a return of -12.46% against the Sensex's 9.00%. This further reinforces the conclusion that Garware Hi Tech is currently overvalued in the market.