Is Sheela Foam overvalued or undervalued?

As of 17 November 2025, the valuation grade for Sheela Foam has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 113.25, an EV to EBIT of 85.93, and an EV to EBITDA of 28.01. These figures suggest that the stock is trading at a premium compared to its earnings and operational performance.
In comparison to peers, Sheela Foam's PE ratio significantly exceeds that of V-Guard Industries at 52.83 and Bata India at 69.25, both of which are also rated as attractive. This disparity highlights that Sheela Foam may be overextended in its valuation relative to its industry counterparts. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 35.59% compared to the Sensex's gain of 8.72%. This further reinforces the notion that Sheela Foam is overvalued in the current market environment.