Is Williamson Magor overvalued or undervalued?

As of 3 September 2025, the valuation grade for Williamson Magor has moved from attractive to risky, indicating a significant shift in the company's perceived financial health. The company is currently considered overvalued, given its poor performance metrics. Key ratios include a PE Ratio of 1.34, an EV to EBIT of -345.66, and a ROCE of -83.55%.
When compared to peers, Williamson Magor's valuation stands out unfavorably; for instance, Bajaj Finance has a PE Ratio of 32.03, while Life Insurance boasts a much more favorable EV to EBITDA of 8.77. The company's recent stock performance has also lagged behind the Sensex, with a year-to-date return of -14.47% compared to the Sensex's positive 3.11%. Overall, these factors suggest that Williamson Magor is not only overvalued but also facing considerable challenges in its operational effectiveness.