Is United Heat overvalued or undervalued?

As of 19 September 2025, the valuation grade for United Heat has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. 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 significantly lower than Larsen & Toubro, which stands at 32.64, indicating that United Heat may not be justifiably priced given its earnings potential. Other peers like IRB Infrastructure Development, which is also classified as expensive, has a PE of 31.57. Furthermore, United Heat's recent stock performance has lagged behind the Sensex, with a year-to-date return of -21.78% compared to the Sensex's 7.11%, reinforcing the notion that the stock is overvalued in the current market context.