Is Heidelberg Cem. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Heidelberg Cement has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 33.24, an EV to EBITDA of 4.05, and a dividend yield of 3.71%.
In comparison to its peers, Heidelberg Cement's PE ratio is significantly lower than UltraTech Cement's 47.58 but higher than Ambuja Cements' 23.94, indicating a premium valuation despite its lower growth prospects. The company has underperformed the Sensex, with a year-to-date return of -9.18% compared to the Sensex's 6.50%, reinforcing the notion of overvaluation in the current market context.