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 investment quality. The company is currently considered undervalued, especially when compared to its peers in the Non-Banking Financial Company (NBFC) sector. Key ratios include a PE Ratio of 1.35, an EV to EBIT of -345.94, and a PEG Ratio of 0.01, which suggest that the stock is trading at a very low valuation relative to its earnings growth potential.
In comparison to peers, Bajaj Finance is classified as very expensive with a PE Ratio of 38.21, while Life Insurance is deemed very attractive with a PE Ratio of 11.49. This stark contrast highlights Williamson Magor's undervaluation in the current market context. Additionally, the company's stock has underperformed against the Sensex over various time frames, particularly with a year-to-date return of -13.34% compared to the Sensex's 7.44%, reinforcing the notion that it may be undervalued relative to its growth prospects.