Is Pearl Global Ind overvalued or undervalued?

As of 20 June 2025, the valuation grade for Pearl Global Ind has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 27.98, an EV to EBITDA of 17.47, and a Price to Book Value of 5.92, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
When compared to peers, Pearl Global Ind's PE Ratio significantly exceeds that of Vardhman Textile at 15.07 and is also higher than Arvind Ltd's 25.91, which is categorized as very attractive. Additionally, the PEG Ratio of 0.87 suggests that while growth may be present, the valuation does not adequately reflect it compared to peers. Notably, the stock has outperformed the Sensex over the past year with a return of 136.66% versus the Sensex's 6.36%, reinforcing the notion of overvaluation despite strong recent performance.