Is Master Component overvalued or undervalued?

As of 28 August 2025, the valuation grade for Master Component has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios reveal a PE Ratio of 35.57, an EV to EBITDA of 23.08, and a Price to Book Value of 4.95, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Master Component's PE Ratio of 35.57 is notably lower than that of Supreme Industries at 64.25 and Astral at 75.35, both categorized as very expensive. However, it is higher than Finolex Industries, which has a PE of 32.56 and is classified as expensive. Additionally, the company has a PEG Ratio of 0.67, indicating potential growth relative to its price, but this does not offset the overall valuation concerns. Despite a year-to-date return of 18.43%, which outperformed the Sensex's 3.62%, the current valuation metrics suggest that Master Component is not a compelling investment at this time.