Is Smiths & Founder overvalued or undervalued?

As of 29 September 2025, the valuation grade for Smiths & Founder has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 38.62, while the EV to EBITDA ratio is 31.31, and the PEG ratio is notably low at 0.49, indicating potential concerns about growth relative to its price.
In comparison to its peers, Smiths & Founder has a higher PE ratio than Bharat Forge, which is fairly valued at 56.72, and Sona BLW Precision, which is very expensive at 41.61. The EV to EBITDA ratio also exceeds that of CIE Automotive, which is attractive at 19.64. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -32.24% compared to the Sensex's 2.85%, reinforcing the notion that Smiths & Founder is overvalued in the current market environment.