Is Goyal Aluminiums overvalued or undervalued?

As of 4 November 2025, Goyal Aluminiums has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 46.70, an EV to EBITDA of 56.66, and an EV to EBIT of 63.88. These figures significantly exceed those of its peers, such as Lloyds Enterprises with a PE ratio of 31.41 and Optiemus Infra, which is rated fair with an EV to EBITDA of 45.81.
The company's financial performance indicators also reflect a concerning trend, with a return on capital employed (ROCE) of 12.63% and a return on equity (ROE) of 11.67%. Notably, Goyal Aluminiums has underperformed compared to the Sensex, with a year-to-date stock return of -30.39% versus the Sensex's gain of 6.81%. This combination of high valuation ratios and poor relative performance suggests that Goyal Aluminiums is indeed overvalued in the current market environment.