Is GSM Foils overvalued or undervalued?

As of 14 October 2025, the valuation grade for GSM Foils has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. Notably, GSM Foils has a PE ratio of 31.61, an EV to EBITDA ratio of 21.22, and a Price to Book Value of 9.76, which are significantly higher than its peers. For instance, Hindalco Industries, which is rated attractive, has a PE ratio of 9.84, while National Aluminium, also attractive, has a PE ratio of 7.17.
In comparison to its peers, GSM Foils exhibits a much higher valuation, indicating that it is overvalued in the current market context. The company's recent stock performance has been strong, with a year-to-date return of 86.27%, significantly outperforming the Sensex's 6.35% over the same period. However, this does not negate the overvaluation indicated by its high ratios relative to peers.