Is Petronet LNG overvalued or undervalued?

As of 15 July 2025, the valuation grade for Petronet LNG has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered fairly valued. Key ratios include a PE ratio of 11.80, an EV to EBITDA of 7.13, and a dividend yield of 3.20%.
In comparison to its peers, Petronet LNG's PE ratio is significantly lower than that of Linde India, which stands at 128.44, and Ellen Industrial Gas at 94.55, both categorized as very expensive. This suggests that Petronet LNG is relatively undervalued within its industry context. Notably, while the stock has underperformed the Sensex over the past year with a return of -10.68% compared to the Sensex's 2.36%, it has shown resilience with a 3-year return of 36.94%, reflecting potential for recovery.