Is Petronet LNG overvalued or undervalued?

As of 4 July 2025, the valuation grade for Petronet LNG has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 11.31, an EV to EBITDA of 6.78, and a dividend yield of 4.34%, all of which suggest strong financial health relative to its market price.
In comparison to its peers, Petronet LNG's valuation metrics stand out, especially when compared to Linde India, which has a PE ratio of 123.81, and Refex Industries with a PE ratio of 35.72. This positions Petronet LNG favorably within the industry, showcasing its potential for growth and profitability. Notably, the stock has underperformed against the Sensex in the short term, with a year-to-date return of -13.41% compared to the Sensex's 6.77%, reinforcing the notion that the stock may be undervalued relative to its fundamentals.