Is United Heat overvalued or undervalued?

As of 15 September 2025, the valuation grade for United Heat has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a PE ratio of 26.16, an EV to EBITDA of 13.72, and a ROE of 9.06%.
In comparison to peers, Larsen & Toubro, which is fairly valued, has a PE ratio of 31.81 and an EV to EBITDA of 16.59, indicating that United Heat's valuation is higher relative to its earnings potential. Other peers like IRB Infrastructure, also classified as expensive, show a PE of 31.34, further supporting the notion that United Heat is overvalued. Additionally, the company's year-to-date return of -19.12% starkly contrasts with the Sensex's positive return of 6.02%, reinforcing concerns about its current valuation.