Is Ruby Mills overvalued or undervalued?

As of 13 June 2025, Ruby Mills has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios and peer comparisons. The PE ratio stands at 17.28, while the EV to EBITDA ratio is 19.06, and the ROE is 7.05%.
In comparison to its peers, Ruby Mills has a lower PE ratio than K P R Mill Ltd, which is at 45.8, and a higher EV to EBITDA ratio than Vardhman Textile, which is at 11.61. This indicates that while Ruby Mills is more reasonably priced than some of its peers, it still does not justify its current valuation given its performance metrics. Additionally, the stock has underperformed relative to the Sensex year-to-date, which further supports the conclusion that Ruby Mills is overvalued at this time.