Is Sumit Woods overvalued or undervalued?

As of 18 August 2025, the valuation grade for Sumit Woods has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 34.44, an EV to EBIT of 18.35, and an EV to EBITDA of 17.85. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Sumit Woods' PE ratio is lower than DLF's 39.66 and Lodha Developers' 42.13, both of which are categorized as very expensive, yet Sumit Woods still reflects an expensive valuation relative to its own historical performance. The company's recent stock performance has been mixed, with a year-to-date return of -29.8%, contrasting with the Sensex's positive return of 5.21% during the same period. This further emphasizes the potential overvaluation of Sumit Woods in the current market environment.