Is VTM overvalued or undervalued?

As of 5 September 2025, the valuation grade for VTM has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 13.69, an EV to EBITDA of 9.37, and a PEG ratio of 0.09, which suggests that VTM is priced favorably relative to its earnings growth potential.
In comparison to its peers, VTM's valuation metrics stand out, particularly against K P R Mill Ltd, which is deemed very expensive with a PE ratio of 41.13, and Trident, rated fair with a PE of 33.12. Additionally, VTM's dividend yield of 1.40% and ROE of 14.60% further reinforce its attractiveness. Despite a recent decline in stock price, VTM has demonstrated strong long-term performance, with a remarkable 5-year return of 597.03%, significantly outperforming the Sensex's 110.42% return in the same period.