Is Iris Clothings overvalued or undervalued?

As of 6 November 2025, the valuation grade for Iris Clothings has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 45.57, an EV to EBITDA of 24.01, and an EV to Sales of 4.31. These figures suggest that the company's stock price does not align well with its earnings and sales performance.
In comparison to its peers, Iris Clothings has a significantly higher PE ratio than K P R Mill Ltd, which stands at 43.81, and Trident, which has a PE of 32.8. Additionally, the PEG ratio for Iris is notably low at 0.00, indicating a lack of growth relative to its price. Recent stock performance shows that Iris Clothings has underperformed against the Sensex, with a 1-year return of -6.47% compared to the Sensex's 4.19%, further reinforcing the view that the stock is overvalued.