Is Macpower CNC overvalued or undervalued?

As of 29 April 2025, the valuation grade for Macpower CNC Machines Ltd. has moved from risky to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 33.84, an EV to EBITDA of 21.20, and a PEG ratio of 4.79, which indicate a high valuation relative to earnings growth expectations.
In comparison to its peers, Macpower CNC's valuation stands out; for instance, its PE ratio is significantly higher than the industry average. While the company has shown strong returns over a longer horizon, such as a 332.95% increase over three years, its recent performance has lagged behind the Sensex, with a year-to-date decline of 40.57% compared to the Sensex's gain of 6.25%. This discrepancy further supports the assessment that Macpower CNC is overvalued in the current market environment.