Is Prince Pipes overvalued or undervalued?

As of 18 August 2025, the valuation grade for Prince Pipes has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued based on its high PE ratio of 155.99, an EV to EBITDA of 26.56, and a Price to Book Value of 2.30. These ratios suggest that investors are paying a premium for the stock relative to its earnings and book value.
When compared to peers, Prince Pipes stands out with a significantly higher PE ratio than Supreme Industries at 64.1 and Finolex Industries at 31.07, both of which are categorized as expensive. The company's return metrics also raise concerns, with a ROE of only 1.48% and a ROCE of 3.14%, which are notably lower than many competitors. Additionally, the stock has underperformed the Sensex over the past year, with a return of -44.72% compared to the Sensex's 1.04%, reinforcing the view that the stock is currently overvalued.