Is PC Jeweller overvalued or undervalued?

As of 29 August 2025, the valuation grade for PC Jeweller has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a price-to-earnings (PE) ratio of 14.79, an EV to EBITDA ratio of 22.80, and a PEG ratio of 0.06, 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, which is at 86.67, and Kalyan Jewellers at 65. These peers are classified as expensive, while PC Jeweller's very attractive rating highlights its favorable valuation. Additionally, despite recent stock performance where it has underperformed the Sensex in the short term, its long-term returns of 673.72% over five years significantly exceed the Sensex's 102.22%, reinforcing its undervalued status in the market.