Is United Heat overvalued or undervalued?

As of 19 September 2025, the valuation grade for United Heat has moved from very expensive to expensive, indicating a slight adjustment in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 25.30, an EV to EBITDA of 13.32, and a ROE of 9.06%.
In comparison to its peers, United Heat's PE ratio is lower than that of Larsen & Toubro, which stands at 32.64, but significantly higher than CG Power & Industrial, which is marked as very expensive with a PE of 122.68. This suggests that while United Heat may be less expensive than some peers, it still does not offer a compelling value proposition given its current valuation metrics. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -21.78% compared to the Sensex's 7.11%, reinforcing the notion of overvaluation.