Is Marvel Decor overvalued or undervalued?

As of 26 August 2025, Marvel Decor's valuation grade has moved from very expensive to fair, indicating a significant shift in its market perception. The company is currently fairly valued, with a PE ratio of 39.56, an EV to EBITDA ratio of 26.18, and a PEG ratio of 4.61. Compared to its peers, Marvel Decor's PE ratio is notably lower than Kajaria Ceramics at 57.68, which is classified as expensive, while it remains higher than L T Foods, which is very attractive at a PE of 24.49.
Despite the recent adjustments in valuation, Marvel Decor has underperformed relative to the Sensex, particularly in the year-to-date period, where it has seen a decline of 29.87% compared to the Sensex's gain of 4.51%. This performance, combined with its current ratios, suggests that while the stock is fairly valued, it may still face challenges in regaining investor confidence in the near term.