Is UPL overvalued or undervalued?

As of 1 July 2025, the valuation grade for UPL has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its strong financial metrics. Key ratios include a PE ratio of 40.43, an EV to EBITDA of 8.63, and a PEG ratio of 0.17, which suggests that the stock is priced favorably relative to its growth prospects.
In comparison to its peers, UPL's valuation appears more appealing. For instance, P I Industries has a PE ratio of 37.99 and an EV to EBITDA of 27.3, while Bayer CropScience stands at a PE of 50.25 and an EV to EBITDA of 39.67, both categorized as very expensive. UPL's recent stock performance has also outpaced the Sensex, with a year-to-date return of 33.64% compared to the Sensex's 7.11%, reinforcing the notion that the stock is undervalued relative to its growth potential and market performance.