Is ITD Cem overvalued or undervalued?

As of 20 June 2025, the valuation grade for ITD Cem has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 36.86, an EV to EBITDA of 16.11, and a PEG ratio of 1.02, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, ITD Cem's PE ratio is higher than that of Larsen & Toubro, which stands at 34.31, and significantly lower than Siemens, which is at 55.47. This positioning, along with an EV to EBITDA that is more favorable than some of its more expensive peers, reinforces the notion of overvaluation. Notably, ITD Cem has outperformed the Sensex with a year-to-date return of 48.40% compared to the Sensex's 5.46%, highlighting strong market performance despite its high valuation metrics.