Is Uma Converter overvalued or undervalued?

As of 26 August 2025, Uma Converter's valuation grade has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a PE ratio of 17.83, an EV to EBITDA of 7.75, and a Price to Book Value of 0.66. These ratios suggest that the stock is trading at a premium compared to its intrinsic value, particularly when considering its low return on equity (ROE) of 3.73% and return on capital employed (ROCE) of 6.94%.
In comparison to its peers, Uma Converter's valuation appears less favorable. For instance, Garware Hi Tech has a PE ratio of 19.33 and an EV to EBITDA of 13.11, while AGI Greenpac is even more attractive with a PE of 17 and an EV to EBITDA of 9.80. The stark contrast in these ratios highlights Uma Converter's overvaluation in the current market. Furthermore, the company's stock has underperformed significantly against the Sensex, with a year-to-date decline of 22.26% compared to a 4.51% increase in the index, reinforcing the notion that it is overvalued at this time.