Is Gamco Ltd overvalued or undervalued?

As of 26 September 2025, Gamco Ltd has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 92.63, an EV to EBITDA ratio of 31.11, and a Price to Book Value of 2.29. Notably, its PEG ratio stands at 0.00, indicating no expected growth in earnings, which is a significant outlier compared to its peers.
In comparison to its peers, Elitecon International is classified as very expensive with a PE ratio of 492.47, while Optiemus Infra is also fair with a PE of 88.2. The stark difference in valuation metrics suggests that Gamco Ltd is positioned more attractively relative to these companies. Additionally, the stock has underperformed the Sensex significantly over the past year, with a return of -57.43% compared to the Sensex's -6.30%, reinforcing the notion that the stock may be undervalued in the current market context.