Is United Heat overvalued or undervalued?

As of 18 September 2025, the valuation grade for United Heat has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. 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, Larsen & Toubro, which is rated as attractive, has a higher PE ratio of 32.69 and an EV to EBITDA of 16.99, while CG Power & Ind is categorized as very expensive with a staggering PE ratio of 123.15. The recent performance of United Heat, with a year-to-date return of -19.62% compared to the Sensex's 7.52%, further underscores its overvaluation in the current market context.