Is Permanent Magnet overvalued or undervalued?

As of 18 July 2025, the valuation grade for Permanent Magnet has moved from expensive to very expensive. The company is currently overvalued, as indicated by its high PE ratio of 57.25, a Price to Book Value of 5.95, and an EV to EBITDA of 31.62. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, which raises concerns about its valuation sustainability.
In comparison to its peers, Permanent Magnet's PE ratio is lower than Rail Vikas, which stands at 61.18, but significantly higher than Ircon International, which is fairly valued at 24.17. Additionally, Tube Investments is also categorized as very expensive with a PE of 83.3. While Permanent Magnet has shown strong returns over the past few years, including a 195.64% return over three years, its current valuation metrics indicate that it may not be justified given the market conditions.