Is Petronet LNG overvalued or undervalued?

As of 30 May 2025, the valuation grade for Petronet LNG has moved from very attractive to attractive. The company is currently considered undervalued based on its strong financial metrics. Key ratios include a PE ratio of 11.56, an EV to EBITDA of 6.96, and a ROCE of 38.09%.
In comparison to its peers, Petronet LNG's valuation appears favorable, especially when contrasted with Linde India, which has a PE ratio of 139.48, and Refex Industries, with a PE of 40.53. Despite a recent decline in YTD returns of -10.25% compared to the Sensex's 5.59%, Petronet LNG's solid fundamentals suggest it remains a compelling investment opportunity.