Is Hathway Cable overvalued or undervalued?

As of 4 November 2025, Hathway Cable's valuation grade has moved from expensive to fair, indicating a potential shift in its market perception. The company appears to be fairly valued at this stage, given its current PE ratio of 24.56 and a price to book value of 0.05, which suggests that the market may be pricing in some risks associated with its earnings potential. Notably, the EV to EBITDA ratio stands at -60.58, reflecting significant challenges in generating positive earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Hathway Cable's valuation metrics are relatively high; for instance, Den Networks has a PE ratio of 8.29, while Dish TV India is loss-making with a PE ratio of 1.5. This indicates that Hathway Cable is valued higher than some of its riskier counterparts, despite its own negative capital employed and low ROE of 0.22%. Additionally, Hathway's stock has underperformed against the Sensex over various time frames, including a year-to-date decline of 13.29% compared to the Sensex's gain of 6.81%. This performance may reinforce the notion that the stock is currently fairly valued amidst a challenging industry landscape.