Is Petronet LNG overvalued or undervalued?

As of 10 November 2025, Petronet LNG's valuation grade has moved from attractive to fair, indicating a shift in its perceived investment quality. The company is currently fairly valued, with a PE ratio of 11.36, a price to book value of 0.20, and a negative EV to EBIT of -16.45. These ratios suggest that while the company is not overvalued, it also lacks strong growth indicators.
When compared to peers, Petronet LNG's valuation metrics stand out. For instance, Confidence Petro, which is rated very attractive, has a PE ratio of 14.52, while Linde India, rated very expensive, has a staggering PE of 97.07. This comparison highlights that Petronet LNG is positioned more favorably than some peers but still does not exhibit the growth potential seen in others. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -19.69% compared to the Sensex's 6.91%, reinforcing the notion of its fair valuation amidst broader market trends.