Is Seshasayee Paper overvalued or undervalued?

Jun 09 2025 03:56 PM IST
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As of May 5, 2025, Seshasayee Paper is considered overvalued with a valuation grade of very expensive, a PE ratio of 16.24, and an EV to EBITDA of 10.61, especially when compared to peers like JK Paper and West Coast Paper, and it has underperformed the Sensex with a 1-year return of -14.06%.
As of 5 May 2025, the valuation grade for Seshasayee Paper has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 16.24, an EV to EBITDA of 10.61, and a ROE of 5.49%.

In comparison to its peers, JK Paper is rated very attractive with a PE of 15.48 and an EV to EBITDA of 8.36, while West Coast Paper is rated fair with a PE of 10.55. This suggests that Seshasayee Paper's valuation does not align favorably with its peers, reinforcing the conclusion that it is overvalued. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-year return of -14.06% compared to the Sensex's 7.62%, further supporting the valuation assessment.
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