Is PC Jeweller overvalued or undervalued?

As of 14 July 2025, the valuation grade for PC Jeweller has moved from fair to very attractive, indicating a significant positive shift in its perceived value. The company is currently assessed as undervalued, especially when considering its PE ratio of 19.30, EV to EBITDA of 33.56, and a PEG ratio of 0.12, which suggests strong growth potential relative to its price.
In comparison to its peers, PC Jeweller stands out with a much lower PE ratio than Titan Company at 90.46 and Kalyan Jewellers at 84.54, both of which are considered expensive. Additionally, while PC Jeweller's EV to EBITDA ratio is 33.56, it is still more favorable than the significantly higher ratios of its peers, reinforcing the undervaluation perspective. Notably, PC Jeweller has outperformed the Sensex significantly over the past year, with a stock return of 144.93% compared to the Sensex's 2.15%, further supporting the argument for its attractive valuation.