Is Rex Sealing overvalued or undervalued?

As of 26 August 2025, Rex Sealing's valuation grade has moved from very expensive to fair, indicating a significant shift in its perceived market value. The company is currently fairly valued, with a PE ratio of 24.51, an EV to EBITDA ratio of 15.43, and a ROCE of 15.66%. In comparison to its peers, Garware Hi Tech has a PE of 19.33 and an EV to EBITDA of 13.11, while AGI Greenpac stands out with a very attractive valuation featuring a PE of 17 and an EV to EBITDA of 9.80.
Despite the recent decline in stock price, with a year-to-date return of -6.15% compared to the Sensex's 3.39%, the valuation metrics suggest that Rex Sealing is now positioned more favorably within its industry. The company's PEG ratio remains at 0.00, indicating no growth expectations priced in, which may present an opportunity for investors looking for value in the packaging sector.