Is Smiths & Founder overvalued or undervalued?

As of 4 November 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 43.12, while the EV to EBITDA ratio is 24.99, and the PEG ratio is 2.36, indicating a high valuation relative to its earnings growth potential. In comparison to its peers, Bharat Forge has a PE ratio of 61.77 and an EV to EBITDA of 25.67, while CIE Automotive, which is rated attractive, has a significantly lower PE ratio of 20.5 and an EV to EBITDA of 12.17. This suggests that Smiths & Founder is trading at a premium compared to some of its peers, which reinforces the conclusion of being overvalued. Additionally, the company's stock has underperformed against the Sensex, particularly over the year, where it has declined by 26.66% compared to a 5.94% gain in the index.