Is Quality Foils overvalued or undervalued?

As of 16 September 2025, the valuation grade for Quality Foils has moved from expensive to very expensive, indicating a significant shift in its market perception. Based on the analysis, Quality Foils is currently overvalued. The company exhibits a PE ratio of 14.07, an EV to EBITDA ratio of 17.10, and a PEG ratio of 2.36, all of which suggest that its valuation metrics are not aligned with its financial performance.
In comparison to its peers, Quality Foils stands out as very expensive, especially when juxtaposed with Tata Steel, which has a PE ratio of 44.24 and an EV to EBITDA of 11.43, indicating a more favorable valuation. Other peers like JSW Steel and Jindal Steel are also valued more attractively, with PE ratios of 53.37 and 25.58, respectively. Additionally, Quality Foils has underperformed in stock returns compared to the Sensex over the past year, with a decline of 39.45% against a slight decline of 0.57% for the index, further reinforcing the notion of its overvaluation.