Is Rajshree Polypac overvalued or undervalued?

As of 28 March 2025, the valuation grade for Rajshree Polypack has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company appears to be overvalued at this time, given its current price of 27.62 compared to its underlying financial ratios. The PE ratio stands at 24.87, while the EV to EBITDA ratio is 7.38, both of which suggest that the stock may be priced higher than its earnings and cash flow justify.
In comparison to its peers, Rajshree Polypack's valuation metrics show it is on par with its industry average, but with a PEG ratio of 0.00, it raises concerns about future growth prospects. Notable peers include companies like XYZ Corp, which has a PE ratio of 20.5, and ABC Ltd, with an EV to EBITDA of 6.5, indicating that Rajshree may not be as competitively priced. Additionally, the company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it has dropped 63.97% compared to the Sensex's 7.88% increase, further supporting the view that it is currently overvalued.