Is Petro Carbon overvalued or undervalued?

As of 26 August 2025, Petro Carbon's valuation grade has moved from very expensive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued, with a PE ratio of 47.44, an EV to EBITDA of 38.62, and a ROE of 5.85%.
In comparison to its peers, Agarwal Industrial has a significantly lower PE ratio of 13.02 and an EV to EBITDA of 8.51, while Kothari Petrochem also shows a fair valuation with a PE of 15.07 and an EV to EBITDA of 11.07. Notably, Petro Carbon's PEG ratio stands at 0.00, suggesting no expected growth, which contrasts sharply with its peers. Despite a recent stock performance that outpaced the Sensex over the past week and month, the longer-term returns show a decline of 39.48% over the past year, reinforcing the notion that the stock is currently fairly valued amidst a challenging market environment.