Is UPL overvalued or undervalued?

As of 6 November 2025, UPL's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 41.31, an EV to EBITDA of 9.79, and a PEG ratio of 0.22. In comparison to its peers, UPL's PE ratio is higher than that of P I Industries at 35.26 and Bayer CropScience at 36.07, both of which are considered expensive.
Despite the recent downgrade in valuation, UPL has shown strong stock performance, with a year-to-date return of 46.51%, significantly outpacing the Sensex return of 6.62%. This suggests that while the stock may be fairly valued at present, its recent performance could indicate underlying strength in the company that may not yet be fully reflected in its valuation metrics.