Is Three M Paper overvalued or undervalued?

As of 8 October 2025, the valuation grade for Three M Paper has moved from attractive to fair. Based on the analysis, the company appears to be fairly valued at this time. Key ratios include a PE ratio of 7.12, an EV to EBITDA of 6.08, and a Price to Book Value of 0.69, which suggest that the stock is trading at a reasonable valuation compared to its earnings and book value.
In comparison to its peers, Three M Paper's PE ratio is significantly lower than JK Paper, which has a PE of 20.19, and West Coast Paper, with a PE of 12.55. This indicates that while Three M Paper is fairly valued, it is trading at a discount relative to some of its competitors in the industry. Additionally, the company's recent stock performance has been weak, with a year-to-date return of -43.54%, contrasting sharply with the Sensex's gain of 4.65% during the same period.