Is Mishtann Foods overvalued or undervalued?

As of 14 February 2025, Mishtann Foods' valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, given its low price-to-earnings (PE) ratio of 1.61, price-to-book value of 0.56, and an impressive return on equity (ROE) of 34.79%. These ratios suggest that the stock is trading at a significant discount compared to its earnings and book value.
In comparison to its peers, Mishtann Foods shows a PE ratio of 1.61, while other companies in the industry may have higher valuations, such as those with PE ratios above 5. The company's EV to EBITDA stands at 1.72, which is competitive but still reflects its undervalued status. Notably, the stock has underperformed the Sensex over the past year, with a return of -68.64% compared to the Sensex's 7.55%, reinforcing the notion that it may be undervalued in the current market context.