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. The company is currently fairly valued based on its financial metrics. Notable 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 indicate a low valuation compared to industry standards.
When compared to peers, Three M Paper's PE ratio is significantly lower than JK Paper's 19.31 and West Coast Paper's 12.07, both of which are rated as attractive. Additionally, while Three M Paper has a fair valuation, Seshasayee Paper, also rated fair, has a much higher PE ratio of 18.15. The recent stock performance shows a decline of 47.71% year-to-date, contrasting sharply with the Sensex's 7.77% gain, reinforcing the notion that the stock may be undervalued relative to its peers and market conditions.