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 market value. The company is currently considered overvalued. Key ratios include a PE ratio of 15.74, an EV to EBITDA of 9.48, and a ROE of 8.60%.
When compared to peers, Paramount Special's valuation stands out against Thermax, which has a PE of 57.09, and BEML Ltd, with a PE of 61.31, both classified as very expensive. This suggests that while Paramount Special's ratios might appear reasonable, they are still significantly higher than those of its peers, reinforcing the overvaluation narrative. Additionally, the company's poor stock performance, with a year-to-date return of -45.04% compared to the Sensex's 8.79%, further supports the conclusion that it is overvalued.