Is Iris Clothings overvalued or undervalued?

As of 19 November 2025, the valuation grade for Iris Clothings has moved from expensive to very expensive. This indicates a significant shift in the company's perceived value, suggesting that it is overvalued at its current price of 32.76. The key ratios reflect this valuation concern, with a PE Ratio of 45.85, an EV to EBITDA of 24.58, and an EV to Sales of 4.18, all of which are considerably higher than industry norms.
When compared to peers, Iris Clothings stands out unfavorably. For instance, K P R Mill Ltd has a PE Ratio of 45.22 and an EV to EBITDA of 29.08, while Trident, which is rated as attractive, has a PE Ratio of 32.78 and an EV to EBITDA of 16.15. These comparisons further reinforce the conclusion that Iris Clothings is overvalued. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of 8.73% compared to the Sensex's 10.18%, highlighting the potential risks for investors.