Is Three M Paper overvalued or undervalued?

As of 22 September 2025, the valuation grade for Three M Paper has moved from expensive to fair. The company is currently assessed as undervalued based on its financial metrics. The PE ratio stands at 7.19, while the EV to EBITDA ratio is 6.58, both of which are significantly lower than peers like JK Paper with a PE of 18.74 and West Coast Paper at 12.55, indicating a more attractive valuation for Three M Paper.
In comparison to its peers, Three M Paper's EV to EBIT ratio of 9.45 also suggests it is positioned favorably within the industry. Despite recent stock performance showing a decline of 43.01% year-to-date against a 5.15% gain in the Sensex, the current valuation metrics suggest that the stock is undervalued relative to its peers and the overall market.