Is Yug Decor overvalued or undervalued?

As of 26 August 2025, the valuation grade for Yug Decor has moved from very expensive to fair. The company is currently fairly valued, with a price-to-earnings (PE) ratio of 31.29, an EV to EBITDA ratio of 18.55, and a return on capital employed (ROCE) of 9.69%. In comparison to its peers, Solar Industries is classified as very expensive with a PE ratio of 101.49, while Godrej Industries is considered attractive with a PE of 42.36.
Despite the recent downgrade in valuation, Yug Decor's performance has lagged behind the Sensex, particularly year-to-date, where it has seen a decline of 23.68% compared to a 3.39% gain in the Sensex. This underperformance, combined with its current ratios, suggests that while the company is fairly valued, it may face challenges in improving its market position relative to its peers.