Is Baweja Studios L overvalued or undervalued?

As of 3 November 2025, Baweja Studios L has moved from a fair to an attractive valuation grade, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by its PE ratio of 9.99, EV to EBIT of 9.00, and EV to EBITDA of 7.80. These ratios suggest that the stock is trading at a lower multiple compared to its earnings and cash flows, which is a favorable sign for potential investors.
In comparison to its peers, Baweja Studios L's valuation metrics stand out, particularly against Prime Focus, which is deemed very expensive with a PE ratio of 77.1, and PVR Inox, also attractive with a PE of 10.49. This peer comparison reinforces the notion that Baweja Studios L is undervalued relative to the broader market. Additionally, while the company's stock has underperformed in the year-to-date period with a return of -31.66% compared to the Sensex's 8.96%, the current valuation presents a compelling opportunity for investors looking for value in the media and entertainment sector.