Is Welspun Living overvalued or undervalued?

As of 13 November 2025, Welspun Living'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 37.60, an EV to EBITDA ratio of 15.57, and a Price to Book Value of 2.75. In comparison, peers such as K P R Mill Ltd, which is considered very expensive with a PE ratio of 44.36, and Trident, classified as expensive with a PE ratio of 33.64, highlight that Welspun Living's valuation is more reasonable within its industry context.
Despite its fair valuation, Welspun Living has underperformed against the Sensex over the past year, with a return of -8.41% compared to the Sensex's 8.74%. This underperformance, coupled with a relatively low ROE of 7.33% and a PEG ratio of 0.00, suggests that while the stock is not overvalued, there may be underlying concerns regarding growth prospects that investors should consider.