Is GAIL (India) overvalued or undervalued?

As of 9 October 2025, the valuation grade for GAIL (India) has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE ratio of 12.04, an EV to EBITDA ratio of 9.52, and a dividend yield of 4.20%. In comparison to its peers, GAIL stands out favorably; for instance, Adani Total Gas has a PE ratio of 106.69, while Indraprastha Gas shows a PE of 18.35. This positions GAIL as a more attractive investment relative to its competitors. Additionally, despite a year-to-date decline of 6.60% compared to the Sensex's 5.16% gain, GAIL's strong long-term performance, with a 3-year return of 105.35%, reinforces its undervaluation narrative.