Is Quality Foils overvalued or undervalued?

As of 23 September 2025, the valuation grade for Quality Foils has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 14.07, an EV to EBITDA of 17.10, and a ROE of 4.71%.
When compared to peers, Quality Foils' valuation stands out, especially against Tata Steel, which has a PE ratio of 44.55 and is rated as attractive, and JSW Steel, rated as fair with a PE of 54.38. The disparity in valuation metrics suggests that Quality Foils is not only overvalued relative to its peers but also faces challenges in generating returns, as evidenced by its low ROCE of 3.20%. The company's stock has underperformed significantly year-to-date, down 27.84%, compared to a 6.45% rise in the Sensex, reinforcing the notion of overvaluation.