Is Welspun Living overvalued or undervalued?

As of 4 July 2025, the valuation grade for Welspun Living has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Notable ratios include a PE ratio of 21.87, an EV to EBITDA of 12.26, and a ROCE of 13.73%.
When compared to peers, Welspun Living's valuation appears reasonable against K P R Mill Ltd, which is considered very expensive with a PE ratio of 49.94, and Trident, which is also fair with a PE of 43.06. While Welspun Living has shown a 7.71% return over the past month, it has underperformed the Sensex on a year-to-date basis, with a decline of 8.70% compared to the Sensex's gain of 6.77%. Overall, the company is positioned fairly within its industry, reflecting a balanced valuation in the current market context.