Is Yash Chemex overvalued or undervalued?

As of 23 September 2025, Yash Chemex has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE ratio of 54.27, an EV to EBITDA of 46.03, and a ROE of 5.45%.
In comparison to its peers, Yash Chemex's valuation stands out as particularly high; for instance, Godrej Industries has a PE ratio of 39.42 and an EV to EBITDA of 30.58, indicating a more attractive valuation. Other peers like Gujarat Fluoroch and Solar Industries are also categorized as very expensive, with PE ratios of 68.24 and 101.9, respectively. Despite a strong year-to-date return of 74.48% compared to the Sensex's 5.07%, the current valuation suggests that Yash Chemex may not sustain this performance given its elevated price metrics.