Is Sumit Woods overvalued or undervalued?

As of 6 October 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 34.16, an EV to EBIT ratio of 18.21, and an EV to EBITDA ratio of 17.71. These figures 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 38.01 and Lodha Developers' 37.58, both categorized as very expensive. However, its EV to EBITDA ratio is more favorable than DLF's significantly higher ratio of 80.81, yet still indicates a premium valuation. Despite recent strong performance with a 1-week return of 11.53% compared to the Sensex's 1.80%, the overall trend shows a year-to-date decline of 30.03% against the Sensex's 6.06%, reinforcing the notion that the stock may be overvalued in the current market context.