Is JK Paper overvalued or undervalued?

As of 28 January 2025, the valuation grade for JK Paper has moved from attractive to very attractive, indicating a stronger position in the market. The company is currently assessed as undervalued. Key ratios include a PE ratio of 15.48, an EV to EBITDA of 8.36, and a Price to Book Value of 1.17, which suggest that the stock is trading at a reasonable valuation compared to its earnings and assets.
In comparison to its peers, JK Paper's PE ratio is notably higher than West Coast Paper, which stands at 10.55, yet lower than Seshasayee Paper at 16.24, indicating a competitive position within the industry. Additionally, the EV to EBITDA ratio of 8.36 positions JK Paper favorably against Andhra Paper, which has a ratio of 6.54, suggesting that JK Paper is generating better value relative to its enterprise value. Despite a recent decline in stock performance year-to-date compared to the Sensex, the long-term returns over five years at 303.26% highlight the company's growth potential and reinforce its undervaluation status.