Is ONGC overvalued or undervalued?

As of 13 October 2025, ONGC's valuation grade has moved from very attractive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its key financial ratios, including a PE ratio of 8.50, an EV to EBITDA of 4.62, and a Price to Book Value of 0.89. These metrics suggest that while the company maintains a decent return on equity at 12.32%, it is not enough to justify its current price levels.
In comparison to its peers, ONGC's valuation appears less favorable; for instance, Reliance Industries has a PE ratio of 22.83 and an EV to EBITDA of 11.82, while IOC is valued attractively with a PE of 14.43 and an EV to EBITDA of 9.10. The recent stock performance shows ONGC lagging behind the Sensex, with a 1-year return of -16.51% compared to the Sensex's 1.16%, further reinforcing the notion that the stock is overvalued in the current market context.