Is Iris Clothings overvalued or undervalued?

As of 12 November 2025, the valuation grade for Iris Clothings has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 46.60, an EV to EBITDA of 24.97, and a Price to Book Value of 4.79, all of which suggest a premium valuation compared to industry norms.
In comparison with peers, K P R Mill Ltd has a PE ratio of 44.49, while Trident shows a PE of 33.79, both of which are lower than Iris Clothings. The high PEG ratio of 0.00 further emphasizes the lack of growth expectations relative to its price. Despite a recent outperformance against the Sensex over the past week, with a stock return of 2.34% compared to the Sensex's 1.09%, the overall valuation metrics suggest that Iris Clothings is not justified at its current price level.