Is Graphite India overvalued or undervalued?

As of 29 August 2025, Graphite India has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial ratios, with a PE ratio of 27.78, an EV to EBITDA of 37.74, and a PEG ratio of 1.53. These metrics suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Graphite India's PE ratio is significantly lower than HEG's 45.53 and Esab India's 45.83, both categorized as very expensive, while Ador Welding, which is attractive, has a PE of 35.98. Additionally, Graphite India's return over the past year has been slightly better than the Sensex, with a decline of 2.21% compared to the Sensex's 2.83% drop, but this does not negate the overall overvaluation indicated by its current financial metrics.