Is Macpower CNC overvalued or undervalued?

As of 13 November 2025, the valuation grade for Macpower CNC has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial ratios, which include a PE ratio of 32.51, an EV to EBITDA of 20.19, and a Price to Book Value of 6.03. These figures suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Macpower CNC's PE ratio is significantly higher than that of Action Construction Equipment, which stands at 28.19, and ISGEC Heavy, which has a more attractive valuation at 24.3. The high PEG ratio of 19.25 further emphasizes the overvaluation, especially when compared to the industry average. Additionally, while Macpower CNC has experienced a notable return of 150.8% over the past three years, its year-to-date performance shows a decline of 42.82%, contrasting sharply with the Sensex's positive return of 9.45% in the same period.