Is Three M Paper overvalued or undervalued?

As of 28 August 2025, the valuation grade for Three M Paper has moved from fair to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 8.13, an EV to EBITDA of 7.01, and a ROE of 16.35%.
In comparison to its peers, Three M Paper's valuation appears less favorable; for instance, JK Paper has a PE ratio of 18.28 and an EV to EBITDA of 8.77, indicating a more attractive valuation. Additionally, West Coast Paper is also categorized as expensive with a PE ratio of 13.37, highlighting the relative overvaluation of Three M Paper. The company's stock has significantly underperformed against the Sensex, with a year-to-date return of -35.57%, further supporting the conclusion that it is overvalued.