Is Star Paper Mills overvalued or undervalued?

As of 14 August 2025, the valuation grade for Star Paper Mills has moved from very attractive to attractive. The company is currently considered undervalued based on its strong financial ratios, including a PE ratio of 6.83, an EV to EBITDA of 2.31, and a Price to Book Value of 0.42. These figures suggest that the stock is trading at a significant discount compared to its earnings and book value.
In comparison to its peers, Star Paper Mills stands out with a much lower PE ratio than JK Paper, which has a PE of 17.34, and West Coast Paper, which is at 12.79. Additionally, the company's EV to EBITDA ratio of 2.31 is notably lower than the industry average, indicating a favorable valuation relative to its earnings potential. Despite a challenging year with a YTD return of -18.28%, the stock's performance over the last five years shows a remarkable increase of 74.60%, suggesting long-term value.