Is United Heat overvalued or undervalued?

As of 9 September 2025, the valuation grade for United Heat has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 26.00, an EV to EBITDA of 13.64, and a ROCE of 12.38%.
In comparison to peers, United Heat's valuation stands out as very expensive, especially when compared to Larsen & Toubro, which has a PE ratio of 31.28 and is rated fair. Other peers like CG Power & Ind and Siemens also reflect higher valuations with PE ratios of 116.22 and 59.57, respectively. Additionally, United Heat's stock has underperformed relative to the Sensex, with a year-to-date return of -20.12% compared to the Sensex's 5.18%, further reinforcing the notion that the company is overvalued in the current market context.