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 considered overvalued. Key ratios include a PE Ratio of 17.28, an EV to EBITDA of 10.31, and a ROE of 8.60%.
In comparison to its peers, Paramount Special's PE ratio is notably lower than that of Thermax, which stands at 55.98, and BEML Ltd, with a PE of 61.47, both of which are also categorized as very expensive. Despite this, Paramount's valuation remains elevated relative to its industry, suggesting limited upside potential. Additionally, the stock has underperformed the Sensex significantly over the past year, with a return of -46.96% compared to the Sensex's 3.88%, reinforcing the notion of overvaluation.