Is ITD Cem overvalued or undervalued?

As of 23 June 2025, the valuation grade for ITD Cem has moved from expensive to very expensive. The company is currently overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 37.00, a Price to Book Value of 7.52, and an EV to EBITDA of 16.17, all of which suggest a high valuation relative to its earnings and assets.
In comparison to its peers, ITD Cem's PE ratio is higher than Larsen & Toubro's attractive PE of 33.59, indicating that ITD Cem may be overvalued relative to a more reasonably priced competitor. Additionally, Siemens, which is also categorized as very expensive, has a significantly higher PE ratio of 53.31, further highlighting the premium at which ITD Cem is trading. Notably, ITD Cem has outperformed the Sensex with a year-to-date return of 48.93% compared to the Sensex's 4.81%, but this strong performance does not mitigate the concerns regarding its current valuation.