Is Yug Decor overvalued or undervalued?

As of 18 November 2025, the valuation grade for Yug Decor has moved from risky to very expensive. This indicates a significant shift in the company's perceived value, leading to the conclusion that it is overvalued. The company's PE ratio stands at an astonishing 315.97, while its EV to EBITDA ratio is 20.31 and the Price to Book Value is 1.92. These ratios suggest that the market has priced the stock excessively high relative to its earnings and book value.
In comparison to its peers, Yug Decor's valuation appears particularly inflated. For instance, Solar Industries has a PE ratio of 94.24 and an EV to EBITDA of 58.00, while Gujarat Fluoroch shows a PE of 57.77 and an EV to EBITDA of 31.21. This stark contrast highlights that Yug Decor is trading at a premium compared to its industry counterparts. Additionally, the company's recent stock performance has lagged significantly behind the Sensex, with a year-to-date return of -46.05% compared to the Sensex's 8.36%, reinforcing the notion that the stock is overvalued.