Is Master Component overvalued or undervalued?

As of 16 July 2025, the valuation grade for Master Component has moved from expensive to very expensive. The company is currently considered overvalued. Key ratios include a PE Ratio of 39.25, an EV to EBITDA of 25.41, and a ROCE of 15.84%.
In comparison to its peers, Master Component's PE Ratio is significantly lower than Supreme Inds. at 56.03 and Astral at 76.47, both of which are also categorized as very expensive. However, it is worth noting that Finolex Inds., which is classified as expensive, has a PE Ratio of 27.74, indicating that Master Component is trading at a premium compared to some of its peers. Despite a strong year-to-date return of 34.72% against the Sensex's 6.63%, the elevated valuation metrics suggest that Master Component may not provide sufficient upside potential at its current price.