Is United Cotfab overvalued or undervalued?

As of 1 October 2025, United Cotfab's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 15.47, an EV to EBITDA of 8.08, and a Price to Book Value of 0.84. These ratios suggest that the company is positioned competitively within its industry, particularly when compared to peers such as Vardhman Textile, which has a PE ratio of 13.96 and Trident with a PE ratio of 33.1.
In the context of its peers, United Cotfab stands out with a PEG ratio of 0.00, indicating potential for growth without the corresponding valuation premium seen in companies like K P R Mill Ltd, which is classified as very expensive with a PE ratio of 43.71. Despite recent stock performance lagging behind the Sensex, particularly a year-to-date decline of 41.83% compared to the Sensex's gain of 3.64%, the current valuation suggests that United Cotfab may offer a more attractive entry point for investors looking for value in the garments and apparel sector.