Is Paramount Specia overvalued or undervalued?

As of 31 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, with a price-to-earnings (PE) ratio of 15.74, a price-to-book value of 1.35, and an EV to EBITDA ratio of 9.48. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Paramount Special's PE ratio is notably lower than that of Thermax, which stands at 57.09, and BEML Ltd, with a PE ratio of 61.31. This highlights that while Paramount Special is considered very expensive, its valuation is still more favorable than some of its peers in the industry. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -45.04%, contrasting sharply with the Sensex's positive return of 8.79% during the same period, further reinforcing the notion that it is overvalued.