Is Confidence Petro overvalued or undervalued?

As of 1 February 2025, the valuation grade for Confidence Petro has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE Ratio of 23.02, an EV to EBITDA of 7.88, and a Price to Book Value of 1.54.
In comparison with peers, Confidence Petro's PE Ratio is notably lower than Linde India, which stands at 139.48, and Petronet LNG at 11.56, highlighting its relative affordability in the market. The EV to EBITDA ratio of 7.88 also positions it favorably against Linde India, which has an EV to EBITDA of 82.79. Despite a recent decline in stock performance compared to the Sensex, particularly in the one-year and year-to-date periods, the long-term growth of 219.06% over five years suggests a strong potential for recovery and value realization.