Is Grauer & Weil overvalued or undervalued?

As of 20 June 2025, the valuation grade for Grauer & Weil has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a PE ratio of 27.76, a Price to Book Value of 4.65, and an EV to EBITDA ratio of 20.36. These metrics suggest that the stock is priced at a premium compared to its earnings and asset value.
In comparison to its peers, Grauer & Weil's PE ratio is notably lower than Solar Industries, which has a PE of 126.83, but higher than Godrej Industries, which stands at 46.43. The PEG ratio of Grauer & Weil is 3.73, which is also higher than that of Godrej Industries at 0.03, indicating that Grauer & Weil may not be providing sufficient growth relative to its price. While the stock has shown strong returns over the past three years, outperforming the Sensex significantly, its current valuation metrics suggest that it may be priced too high relative to its fundamentals.