Is Three M Paper overvalued or undervalued?

As of 24 October 2025, the valuation grade for Three M Paper has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued. Key ratios include a PE ratio of 6.60, an EV to EBITDA of 5.84, and a Price to Book Value of 0.63, which suggest that the company is trading at a low valuation compared to its earnings and assets.
In comparison to its peers, Three M Paper's PE ratio is significantly lower than that of JK Paper, which stands at 19.31, and West Coast Paper, with a PE of 12.07, both of which are rated as attractive. This highlights that Three M Paper may be undervalued relative to its industry counterparts. Additionally, the company's recent stock performance has underperformed the Sensex, with a year-to-date return of -47.71% compared to the Sensex's 7.77%, reinforcing the notion that the market may not fully recognize its value at this time.