Is RHI Magnesita overvalued or undervalued?

As of 10 November 2025, RHI Magnesita's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 56.99, an EV to EBITDA of 22.64, and a Price to Book Value of 2.35, which suggest that while the company has a high earnings multiple, its overall valuation may not fully reflect its potential compared to peers.
In comparison to its industry, RHI Magnesita's PE ratio is notably higher than Vesuvius India at 39.43 and lower than IFGL Refractories at 57.58, indicating a competitive positioning within the sector. The PEG ratio stands at 0.00, further suggesting that the stock may be undervalued relative to its growth prospects. Despite recent underperformance against the Sensex, particularly over the past year with a decline of 20.58% compared to the Sensex's 5.09% gain, the long-term outlook remains promising with a 5-year return of 120.95%.