Is Sanstar overvalued or undervalued?

As of 5 September 2025, the valuation grade for Sanstar has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios supporting this assessment include a PE ratio of 58.05, an EV to EBITDA of 49.21, and a Price to Book Value of 2.37. These figures suggest that Sanstar is trading at a premium compared to its earnings and book value.
In comparison to its peers, Sanstar's valuation appears high, especially when contrasted with Godrej Industries, which has a PE ratio of 40.09 and an EV to EBITDA of 30.89, indicating a more attractive valuation. Other peers such as Solar Industries and Gujarat Fluoroch are also categorized as very expensive, with PE ratios of 99.93 and 59.35, respectively. Despite Sanstar's recent stock performance showing a 5.84% return over the past week, its year-to-date return of -28.27% highlights the challenges it faces in the current market environment, reinforcing the conclusion that it is overvalued.