Is Iris Clothings overvalued or undervalued?

As of 18 November 2025, the valuation grade for Iris Clothings has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 45.27, an EV to EBITDA of 24.28, and a Price to Book Value of 4.65, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Iris Clothings has a higher PE ratio than K P R Mill Ltd, which stands at 45.81, and significantly exceeds Trident's attractive PE ratio of 32.57. This highlights that while Iris Clothings is expensive, other companies in the sector are also trading at high valuations. Recent stock performance shows that Iris Clothings has underperformed the Sensex over the past year, with a return of -0.83% compared to the Sensex's 10.47%, reinforcing the notion that the stock may be overvalued in the current market context.