Is Sumit Woods overvalued or undervalued?

As of 23 June 2025, the valuation grade for Sumit Woods has moved from fair to expensive, indicating that the company is overvalued. The current PE ratio stands at 34.82, while the EV to EBITDA ratio is 19.77, and the ROE is 7.72%. In comparison to its peers, DLF has a significantly higher PE ratio of 45.11, and Macrotech Developers shows an even higher PE at 53.25, both categorized as very expensive.
Given these metrics, Sumit Woods appears overvalued in the current market context. The stock has underperformed relative to the Sensex, particularly year-to-date with a decline of 33.41% compared to the Sensex's gain of 5.61%. This performance further reinforces the notion that the stock may not be a favorable investment at its current price of 95.22.