Is Permanent Magnet overvalued or undervalued?

As of 7 August 2025, the valuation grade for Permanent Magnet has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 48.41, an EV to EBITDA ratio of 25.12, and a Price to Book Value of 5.68. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Permanent Magnet's PE ratio is notably higher than Rail Vikas, which stands at 56.41, and significantly above Ircon International, which has a PE ratio of 23.61. This indicates that while Permanent Magnet is expensive, some of its peers are even more so, yet the overall market sentiment still leans towards overvaluation. Additionally, the company's recent stock performance has outpaced the Sensex over the past week and month, but its year-to-date return of -1.55% contrasts with the Sensex's positive return of 3.18%, reinforcing the notion of overvaluation in the current market context.