Is Macpower CNC overvalued or undervalued?

Aug 29 2025 08:15 AM IST
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As of August 28, 2025, Macpower CNC is considered overvalued with a PE ratio of 31.35, significantly higher than its peers, and has experienced a poor year-to-date return of -45.01%, contrasting with the Sensex's positive return of 3.62%.
As of 28 August 2025, the valuation grade for Macpower CNC has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its key ratios, including a PE ratio of 31.35, an EV to EBITDA of 19.46, and a Price to Book Value of 5.81. These figures suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Macpower CNC's PE ratio is significantly higher than that of ISGEC Heavy, which stands at 27.84, and ION Exchange, with a PE of 29.31. This highlights that Macpower CNC is priced more aggressively than some of its competitors in the industrial manufacturing sector. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -45.01%, contrasting sharply with the Sensex's positive return of 3.62% during the same period, further reinforcing the notion of overvaluation.
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