Is Macpower CNC overvalued or undervalued?

As of 18 July 2025, the valuation grade for Macpower CNC has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios highlight this assessment, with a PE Ratio of 40.80, an EV to EBITDA of 25.64, and a PEG Ratio of 5.25, all suggesting high valuation multiples compared to industry norms.
In comparison to peers, Macpower CNC's PE Ratio is significantly higher than that of Thermax at 73.26 and BEML Ltd at 62.64, both of which are also categorized as very expensive. The high valuation is further supported by its low dividend yield of 0.14% and a robust ROCE of 25.26%, indicating that while the company is generating returns, the price investors are willing to pay is excessive. Notably, despite a strong performance over three years, the stock has underperformed the Sensex year-to-date and over the past year, reinforcing concerns about its current valuation.