Is Titan Company overvalued or undervalued?

As of 8 August 2025, Titan Company's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios reflect this assessment, with a PE Ratio of 82.74, an EV to EBITDA of 50.54, and a Price to Book Value of 26.43, all significantly higher than industry norms.
In comparison to its peers, Titan's valuation stands out as expensive; for instance, Kalyan Jewellers has a PE of 67.96 and an EV to EBITDA of 35.07, while PC Jeweller, deemed very attractive, has a PE of just 15.63 and an EV to EBITDA of 23.83. Despite Titan's strong return on equity (ROE) at 28.71% and return on capital employed (ROCE) at 23.08%, the company's high valuation ratios suggest that it is priced for perfection. Recent stock performance shows Titan outperforming the Sensex over various periods, but this does not mitigate the overvaluation concern.