Is Trident overvalued or undervalued?

As of 3 October 2025, Trident's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, with a PE ratio of 33.41, an EV to EBIT of 25.46, and an EV to EBITDA of 15.89. These ratios suggest that Trident is trading at a premium compared to its earnings and cash flow, which raises concerns about its current valuation.
In comparison to its peers, Trident's valuation appears high relative to Vardhman Textile, which has a PE ratio of 13.84 and an EV to EBITDA of 10.06, indicating a more attractive valuation. Additionally, Arvind Ltd, another peer, has a PE ratio of 21.45, further emphasizing Trident's overvaluation. Notably, Trident's recent stock performance has lagged behind the Sensex, with a year-to-date return of -14.50% compared to the Sensex's 3.93%, reinforcing the notion that the stock may be overpriced in the current market environment.