Is United Heat overvalued or undervalued?

As of 5 September 2025, the valuation grade for United Heat has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 25.39, an EV to EBITDA of 13.36, and a ROCE of 12.38%.
In comparison to its peers, Larsen & Toubro, which is fairly valued, has a higher PE ratio of 31.54 and an EV to EBITDA of 16.46, indicating that United Heat's valuation is relatively high. Other peers like IRB Infrastructure Development are also in the expensive category with a PE of 30.71, further supporting the notion that United Heat is overvalued. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -21.78% compared to the Sensex's 4.64%, reinforcing the overvaluation perspective.