Is Three M Paper overvalued or undervalued?

As of 20 October 2025, the valuation grade for Three M Paper has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, especially when considering its headline ratios: a PE ratio of 6.35, an EV to EBITDA of 5.73, and an EV to Sales ratio of 0.47. These figures suggest that the stock is trading at a significant discount compared to its earnings and sales potential.
In comparison to its peers, Three M Paper's valuation metrics stand out. For instance, JK Paper has a PE ratio of 19.46 and an EV to EBITDA of 9.23, while West Coast Paper shows a PE of 11.94 and an EV to EBITDA of 5.36. This stark contrast highlights Three M Paper's attractive valuation relative to its competitors. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -49.62% compared to the Sensex's 7.97%, reinforcing the notion that the stock may be undervalued in the current market environment.