Is West Coast Paper overvalued or undervalued?

As of 4 July 2025, West Coast Paper's valuation grade has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at this time. Key ratios include a Price-to-Earnings (PE) ratio of 11.94, an EV to EBITDA ratio of 6.11, and a Price to Book Value of 1.06, which suggest that the stock may not justify its current price relative to its earnings and book value.
In comparison to its peers, West Coast Paper's PE ratio is significantly lower than JK Paper, which has a PE of 16.83, and Seshasayee Paper, which stands at 17.62. This disparity highlights that West Coast Paper is trading at a lower valuation despite its recent performance. Furthermore, while the stock has shown strong returns over the past five years at 200.56%, it has underperformed the Sensex over the last year, with a decline of 20.59% compared to the Sensex's gain of 4.23%. This combination of factors reinforces the view that West Coast Paper is currently overvalued.