Is Rex Sealing overvalued or undervalued?

As of 28 August 2025, Rex Sealing's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, as evidenced by its PE ratio of 24.51, which is notably higher than its peers such as Garware Hi Tech at 19.57 and AGI Greenpac at 16.94. Additionally, Rex Sealing's EV to EBITDA ratio stands at 15.43, again surpassing the industry average, while its PEG ratio is at an alarming 0.00, suggesting no growth expectations are priced in.
In comparison to its peers, Rex Sealing's financial metrics highlight its overvaluation. For instance, while Uflex has a PE ratio of 12.15 and an EV to EBITDA of 6.36, Rex Sealing's ratios indicate a premium that does not align with its growth prospects. Furthermore, the company's stock has underperformed against the Sensex, with a year-to-date return of -6.15% compared to the Sensex's 2.48%, reinforcing the notion that it is currently overvalued in the market.