Is SPP overvalued or undervalued?

As of 13 June 2025, the valuation grade for SPP has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company remains overvalued. Key ratios include a PE ratio of 24.52, an EV to EBIT of 20.53, and a Price to Book Value of 1.11, which suggest that the stock is priced higher relative to its earnings and book value compared to its peers.
In comparison to its industry peers, SPP's valuation appears less favorable. For instance, Finolex Industries, also categorized as expensive, has a PE ratio of 28.96 and an EV to EBITDA of 24.96, while Time Technoplast, which is fairly valued, has a PE ratio of 25.68. Notably, SPP's ROCE stands at 5.17% and ROE at 4.52%, both of which are relatively low, further supporting the conclusion of overvaluation. Additionally, the company's year-to-date return of -44.79% starkly contrasts with the Sensex's 4.54% gain, reinforcing the perception of SPP being overvalued in the current market context.