Is GAIL (India) overvalued or undervalued?

As of 7 February 2025, GAIL (India) has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 11.90, an EV to EBITDA of 9.37, and a dividend yield of 3.40%. In comparison to its peers, GAIL (India) stands out favorably against Adani Total Gas, which is very expensive with a PE of 114.25, and Gujarat Gas, which is fairly valued at a PE of 28.58. Notably, Mahanagar Gas, also rated very attractive, has a PE of 12.63, indicating that GAIL remains competitively priced within its industry. While GAIL's stock has underperformed the Sensex over the past year, its strong returns over the longer term suggest potential for recovery and growth.