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 improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 25.30, while the EV to EBITDA ratio is 13.32, and the EV to Sales ratio is 2.27, all of which suggest that the stock is priced higher than its fundamentals would support.
In comparison to peers, United Heat's PE ratio is significantly lower than that of Larsen & Toubro, which has a PE of 32.64, indicating that United Heat is not as attractive as its competitor. Additionally, the PEG ratio is at 0.00, which raises concerns about growth expectations. The recent stock performance has also been underwhelming, with a year-to-date return of -21.78%, contrasting sharply with a 7.11% return from the Sensex, further reinforcing the view that United Heat is overvalued in the current market environment.