Is Three M Paper overvalued or undervalued?

As of 29 September 2025, the valuation grade for Three M Paper has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 7.11, an EV to EBITDA of 6.08, and a Price to Book Value of 0.68, indicating a low valuation compared to its earnings and asset base.
In comparison to its peers, Three M Paper's PE ratio is significantly lower than JK Paper at 18.08 and West Coast Paper at 12.2, both of which are rated as attractive. Furthermore, the EV to EBITDA ratio of 6.08 for Three M Paper is more favorable than the industry average, suggesting it may be undervalued relative to its operational performance. Despite a challenging year with a YTD stock return of -43.6% compared to a 2.85% gain in the Sensex, the current valuation metrics suggest that Three M Paper is fairly positioned in the market.