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 shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE ratio of 27.76, an EV to EBITDA of 20.36, and a PEG ratio of 3.73, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Grauer & Weil's PE ratio is notably lower than that of Solar Industries at 126.83 and significantly higher than Godrej Industries, which stands at 46.43. This disparity highlights the overvaluation of Grauer & Weil within its sector. Additionally, while the company's recent stock performance has outpaced the Sensex over shorter periods, it has underperformed year-to-date and over the past year, reinforcing the notion that its current valuation may not be justified by its growth prospects.