Is Grauer & Weil overvalued or undervalued?

As of 22 May 2025, the valuation grade for Grauer & Weil has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 23.68, an EV to EBITDA of 16.96, and a PEG ratio of 3.18, all of which suggest that the stock is trading at a premium compared to its earnings and growth potential.
When compared to peers, Grauer & Weil's PE ratio is significantly lower than that of Solar Industries, which stands at 123.77, and also higher than Godrej Industries, which has a PE of 46.63. This positions Grauer & Weil in a challenging spot within its industry, as it is more expensive than some competitors while still being less than the most expensive peer. Additionally, the company has underperformed relative to the Sensex over the year, with a return of 1.75% compared to the Sensex's 7.62%, reinforcing the notion that it may be overvalued in the current market context.