Is Williamson Magor overvalued or undervalued?

As of 17 October 2025, the valuation grade for Williamson Magor has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 1.35, an EV to EBIT of -345.94, and a PEG ratio of 0.01, all of which suggest that the stock is trading at a substantial discount relative to its earnings potential.
In comparison to peers, Bajaj Finance is classified as very expensive with a PE ratio of 38.21, while Life Insurance is very attractive with a PE of 11.49. This stark contrast highlights Williamson Magor's relative undervaluation within the Non-Banking Financial Company (NBFC) sector. Despite recent underperformance against the Sensex, with a YTD return of -13.34% compared to the Sensex's 7.44%, the current valuation metrics suggest that there is potential for recovery and growth in the stock price.