Is Welspun Living overvalued or undervalued?

As of 30 June 2025, the valuation grade for Welspun Living has moved from fair to attractive, indicating a positive shift in its market perception. The company appears to be undervalued, with a PE ratio of 21.77, an EV to EBITDA of 12.21, and a PEG ratio of 0.00, suggesting that the stock is trading at a discount relative to its earnings growth potential.
When comparing Welspun Living to its peers, K P R Mill Ltd is classified as very expensive with a PE ratio of 47.89, while Vardhman Textile is considered expensive with a PE ratio of 16.36. This further supports the argument that Welspun Living is undervalued in its sector. Additionally, while the stock has underperformed the Sensex year-to-date, it has shown strong returns over the longer term, with a 286.50% increase over the past five years, reinforcing its potential for future growth.