Is United Heat overvalued or undervalued?

As of 17 September 2025, the valuation grade for United Heat has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 25.28, an EV to EBIT of 16.10, and a ROE of 9.06%.
In comparison to peers, Larsen & Toubro, which is fairly valued, has a PE ratio of 32.69, while IRB Infrastructure Development, also expensive, shows a PE of 31.83. The significant disparity in PE ratios suggests that United Heat may not justify its current valuation relative to its peers. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -21.84% compared to the Sensex's 7.13%, reinforcing the notion that United Heat is overvalued in the current market context.