Is Petronet LNG overvalued or undervalued?

As of 7 November 2025, Petronet LNG's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, with a PE ratio of 11.26, an EV to EBITDA of 6.70, and a dividend yield of 3.59%. These metrics suggest that Petronet LNG is trading at a reasonable valuation compared to its peers.
In comparison to its industry, Petronet LNG stands out against companies like Linde India, which has a PE ratio of 97.19, and Ellen. Indl. Gas, with a PE of 78.99, both categorized as very expensive. This positions Petronet LNG favorably within the gas sector. Despite recent underperformance, with a year-to-date return of -19.47% compared to the Sensex's 6.50%, the company's strong ROCE of 38.09% and ROE of 19.99% reinforce its potential for future growth and value creation.