Is Rex Sealing overvalued or undervalued?

As of 8 August 2025, the valuation grade for Rex Sealing has moved from very expensive to risky, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of 28.00, which is significantly higher than peers like Garware Hi Tech at 22 and AGI Greenpac at 17.1. Additionally, Rex Sealing's EV to EBITDA stands at 17.53, which is also above the industry average, suggesting that the stock may not be justified at its current price level.
In comparison to its peers, Rex Sealing's PEG ratio is notably low at 0.00, indicating a lack of growth potential relative to its price, while its ROCE of 15.66% and ROE of 12.86% are decent but do not compensate for its high valuation ratios. Given these factors, Rex Sealing is likely overvalued in the current market context. Despite a strong one-month stock return of 13% compared to a decline in the Sensex, the overall valuation metrics suggest caution for potential investors.