Is Yug Decor overvalued or undervalued?

As of 11 September 2025, the valuation grade for Yug Decor has moved from risky to very expensive. This indicates that the company is currently overvalued. Key ratios supporting this conclusion include a PE ratio of 31.83, an EV to EBITDA of 24.84, and a ROCE of just 4.00%. In comparison, peers such as Godrej Industries, which has a PE ratio of 40.4 and an EV to EBITDA of 31.04, are positioned more attractively, while Solar Industries stands out with a significantly higher PE ratio of 100.34.
Despite a recent stock return of 1.72% over the past week, which outperformed the Sensex's 1.03%, the longer-term performance shows a decline of 28.22% over the past year compared to a flat Sensex return. This further reinforces the notion that Yug Decor is overvalued in the current market context.