Is United Cotfab overvalued or undervalued?

As of 29 September 2025, the valuation grade for United Cotfab has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 15.94, an EV to EBITDA of 8.21, and a Price to Book Value of 0.87, which suggest that while the company is generating earnings, its valuation remains high relative to its book value.
In comparison to peers, United Cotfab's PE ratio is significantly lower than that of K P R Mill Ltd, which stands at 45.61, and also lower than Trident's PE of 32.92, both of which are categorized as very expensive and fair, respectively. This indicates that while United Cotfab is overvalued, it is still more attractive than some of its higher-valued peers. The company's recent stock performance has been poor, with a year-to-date return of -40.07%, contrasting sharply with the Sensex's positive return of 2.85%, further reinforcing the notion of overvaluation.