Is Quality Foils overvalued or undervalued?

As of 15 September 2025, the valuation grade for Quality Foils has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued. Key ratios include a PE ratio of 13.51, an EV to EBITDA of 16.92, and a Price to Book Value of 0.64, which suggest that while the PE ratio is relatively low, the overall valuation metrics do not support a favorable investment case at this price level.
In comparison to its peers, Quality Foils' PE ratio of 13.51 is significantly lower than JSW Steel's 52.63 and Tata Steel's 43.52, which are both classified as fair and attractive, respectively. However, the EV to EBITDA ratio of 16.92 is higher than Tata Steel's 11.29, indicating that Quality Foils may be overvalued relative to its earnings potential. Additionally, the company's year-to-date return of -30.72% starkly contrasts with the Sensex's 6.02% return, reinforcing the notion that Quality Foils is struggling in the current market environment.