Is GSM Foils overvalued or undervalued?

As of 1 October 2025, the valuation grade for GSM Foils has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios supporting this conclusion include a PE ratio of 33.22, an EV to EBITDA of 22.24, and a Price to Book Value of 10.26, all of which are substantially higher than industry norms.
In comparison to its peers, Hindalco Industries and National Aluminium, which have PE ratios of 9.95 and 6.88 respectively, GSM Foils stands out as significantly more expensive. Additionally, the company's PEG ratio is at 0.00, suggesting that there is no growth expected, which further reinforces the overvaluation narrative. Notably, GSM Foils has outperformed the Sensex in recent periods, with a year-to-date return of 95.74% compared to the Sensex's 5.04%, although this does not mitigate its current overvaluation status.