Is Hardcast.& Waud overvalued or undervalued?

As of 14 October 2025, the valuation grade for Hardcast.& Waud has moved from very expensive to expensive. The company appears to be overvalued based on its current financial metrics. The PE ratio stands at 52.70, while the EV to EBITDA ratio is 15.09, indicating a premium valuation compared to its peers. The ROCE is relatively low at 5.41%, which raises concerns about the efficiency of capital utilization.
In comparison to its peers, Hardcast.& Waud's valuation is higher than that of Kansai Nerolac, which has a PE ratio of 31.21 and an EV to EBITDA of 19.76, and Akzo Nobel, with a PE of 37.53 and an EV to EBITDA of 24.58. These comparisons suggest that Hardcast.& Waud is priced at a significant premium despite its lower return metrics. Furthermore, the company's stock has underperformed relative to the Sensex over various periods, particularly with a year-to-date decline of 19.46% compared to a 4.98% increase in the index.