Is Milton Industri. overvalued or undervalued?

As of 23 September 2025, the valuation grade for Milton Industries has moved from fair to very expensive. The company is currently overvalued, with a PE ratio of 38.95, an EV to EBIT of 42.67, and an EV to EBITDA of 23.90. In comparison to its peers, Century Plyboard has a PE ratio of 88.53 and an EV to EBITDA of 38.70, while Greenply Industries shows a PE ratio of 47.56 and an EV to EBITDA of 18.49, indicating that Milton Industries is trading at a premium despite its lower performance metrics.
The company's return on capital employed (ROCE) stands at a mere 2.32%, and the return on equity (ROE) is at 2.53%, which are significantly lower than industry standards. Additionally, the stock has underperformed against the Sensex, with a year-to-date return of -35.82% compared to the Sensex's gain of 6.45%. This further reinforces the view that Milton Industries is overvalued in the current market context.