Is Paramount Specia overvalued or undervalued?

As of 31 October 2025, the valuation grade for Paramount Special moved from expensive to very expensive. This indicates a significant shift in the perception of its valuation. The company is currently deemed overvalued, with a price-to-earnings (PE) ratio of 15.74, an EV to EBITDA ratio of 9.48, and a return on equity (ROE) of 8.60%.
In comparison to its peers, Paramount Special's valuation appears starkly higher; for instance, Thermax has a PE ratio of 57.09, while BEML Ltd shows a PE of 61.31, both categorized as very expensive. The company's recent stock performance has been underwhelming, with a year-to-date return of -45.04%, contrasting sharply with the Sensex's positive return of 8.79% during the same period. This further reinforces the notion that Paramount Special is currently overvalued in the market.