Is Three M Paper overvalued or undervalued?

As of 9 October 2025, the valuation grade for Three M Paper has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, supported by a price-to-earnings (PE) ratio of 7.12, a price-to-book value of 0.69, and an EV to EBITDA ratio of 6.08. These ratios suggest that the stock is trading at a significant discount compared to its intrinsic value.
In comparison to its peers, Three M Paper's valuation metrics are notably lower. For instance, JK Paper has a PE ratio of 19.97, while West Coast Paper stands at 12.39. This stark contrast highlights Three M Paper's potential for growth and value realization. Additionally, despite recent stock performance lagging behind the Sensex, with a year-to-date return of -43.54% compared to the Sensex's 5.16%, the current valuation suggests that the stock may present a compelling buying opportunity for investors looking for value in the paper industry.