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. Key ratios include a PE ratio of 25.39, an EV to EBIT of 16.16, and an EV to EBITDA of 13.36. In comparison, peers such as Larsen & Toubro have a PE ratio of 31.54 and an EV to EBITDA of 16.46, while IRB Infrastructure Development shows a PE of 30.71 and an EV to EBITDA of 11.56.
The recent performance of United Heat has been underwhelming, with a year-to-date return of -21.78%, contrasting sharply with the Sensex's gain of 4.64% during the same period. This further underscores the perception of overvaluation in the market, as the company's financial metrics do not justify its current price levels compared to its peers.