Is John Cockerill overvalued or undervalued?

As of 6 November 2025, the valuation grade for John Cockerill has moved from risky to very expensive. The company is currently assessed as overvalued, with a PE ratio of 320.32, an EV to EBITDA of 214.02, and a PEG ratio of 10.22. These figures indicate a significant premium compared to its peers, such as Thermax, which has a PE of 57.56 and an EV to EBITDA of 37.93, and BEML Ltd, with a PE of 56.02 and an EV to EBITDA of 44.88.
In addition to its high valuation ratios, John Cockerill's ROE stands at a mere 4.19%, suggesting that the returns generated on equity are not commensurate with its lofty market valuation. While the company has shown strong returns over the long term, outperforming the Sensex significantly over 3 and 5 years, the current valuation metrics indicate that it is not justified at this price level.