Is Polycab India overvalued or undervalued?

As of 20 June 2025, Polycab India has moved from expensive to very expensive in its valuation grade. The company is currently overvalued, with a PE ratio of 44.78, a Price to Book Value of 9.21, and an EV to EBITDA ratio of 29.77. Compared to peers, Polycab's valuation stands out; for instance, Havells India has a PE ratio of 65.39 and KEI Industries at 49.09, both of which are also expensive, but Polycab's ratios indicate a higher relative valuation.
Additionally, the PEG ratio for Polycab is 3.43, suggesting that growth expectations may not justify the current price. While the company has shown strong returns over the last five years at 650.6%, it has underperformed the Sensex year-to-date with a decline of 17.32% compared to the index's gain of 5.46%. This performance, alongside its high valuation ratios, reinforces the conclusion that Polycab India is overvalued in the current market.