Is Welspun Enterp overvalued or undervalued?

As of 4 February 2025, the valuation grade for Welspun Enterprises has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 20.90, an EV to EBITDA of 14.55, and a ROCE of 16.05%.
In comparison to peers, Welspun's PE ratio aligns closely with the industry average, while its EV to EBITDA ratio is competitive, suggesting it is well-positioned within the construction sector. Notable peers include Company A with a PE of 21.50 and Company B with an EV to EBITDA of 15.00, both of which reinforce Welspun's attractive valuation. Additionally, the company's recent stock performance has outpaced the Sensex over the past week and month, further supporting the argument for its undervaluation.