Is UPL overvalued or undervalued?

As of 13 May 2025, UPL's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 38.74, an EV to EBITDA of 8.35, and a PEG ratio of 0.17, which suggests strong growth potential relative to its price.
When compared to peers in the Pesticides & Agrochemicals industry, UPL's metrics are competitive, particularly against a peer with a similar PE ratio of approximately 39 and an EV to EBITDA of around 8.35. Despite recent stock performance lagging behind the Sensex over the past month, UPL has shown a year-to-date return of 27.06%, significantly outperforming the Sensex's 5.60% during the same period. This combination of attractive valuation ratios and strong growth prospects reinforces the conclusion that UPL is currently undervalued.