Is Petronet LNG overvalued or undervalued?

As of 22 July 2025, Petronet LNG's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its robust financial metrics. Key ratios include a PE ratio of 11.45, an EV to EBITDA of 6.88, and a dividend yield of 3.30%, all of which suggest strong profitability and shareholder returns relative to its price.
In comparison with peers, Petronet LNG stands out favorably against companies like Linde India, which has a PE ratio of 123.86, and Ellen Industrial Gas, with a PE of 96.98, both categorized as very expensive. This stark contrast highlights Petronet LNG's attractive valuation in the gas industry. Despite a recent decline in stock performance relative to the Sensex, particularly year-to-date, the long-term returns over 10 years at 211.21% indicate a strong growth trajectory, reinforcing the notion that the company is undervalued at its current price of 303.35.