Is Master Component overvalued or undervalued?

As of 26 August 2025, the valuation grade for Master Component has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Despite this change, the company remains overvalued in the current market context. The key ratios supporting this conclusion include a PE ratio of 36.05, an EV to EBITDA of 23.39, and a Price to Book Value of 5.02, all of which are elevated compared to industry norms.
In comparison to its peers, Master Component's PE ratio is significantly higher than Finolex Industries, which stands at 32.56, and much lower than Supreme Industries at 65.33. Additionally, the PEG ratio of 0.68 suggests that while the company may be growing, its current valuation does not adequately reflect that growth relative to its price. Recent stock performance shows a year-to-date return of 23.75%, outperforming the Sensex's 4.51%, but this does not mitigate the overvaluation indicated by the ratios.