Is Petronet LNG overvalued or undervalued?

As of 7 August 2025, the valuation grade for Petronet LNG has moved from very attractive to attractive. The company is currently assessed as undervalued. Key ratios include a PE ratio of 11.28, an EV to EBITDA of 6.70, and a dividend yield of 3.59%.
In comparison to its peers, Petronet LNG's valuation appears favorable against Linde India, which is very expensive with a PE of 123.51, and Ellen Industrial Gas, also very expensive with a PE of 88.06. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date decline of 19.40% compared to the Sensex's gain of 3.18%, the underlying fundamentals suggest that Petronet LNG remains a compelling investment opportunity.