Is Pentagon Rubber overvalued or undervalued?

As of 18 September 2025, the valuation grade for Pentagon Rubber has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 15.97, an EV to EBITDA of 15.56, and a ROE of 8.39%. In comparison to peers, Pentagon Rubber's PE Ratio is significantly lower than that of Altius Telecom, which stands at 54.74, highlighting the disparity in valuation within the industry. Other peers, such as Embassy Office REIT and Mindspace Business, are also categorized as very expensive, with PE Ratios of 24.22 and 53.84, respectively. Notably, Pentagon Rubber's stock has underperformed, showing a year-to-date decline of 37.29%, while the Sensex has gained 7.52% during the same period, further reinforcing the view that the stock is overvalued.