Is Paramount Specia overvalued or undervalued?

As of 17 October 2025, the valuation grade for Paramount Special has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 17.28, an EV to EBITDA of 10.31, and a ROE of 8.60%.
When compared to its peers, Paramount Special's valuation stands out; for instance, Thermax has a PE of 55.98 and an EV to EBITDA of 36.86, while BEML Ltd shows a PE of 61.47 and an EV to EBITDA of 36.71. These comparisons highlight that Paramount Special is not only overvalued but also underperforming relative to its industry peers. Additionally, the stock has significantly lagged behind the Sensex, with a year-to-date return of -39.66% compared to the Sensex's gain of 8.73%, reinforcing the overvaluation narrative.