Is Petronet LNG overvalued or undervalued?

As of 14 November 2025, Petronet LNG's valuation grade has moved from fair to attractive, indicating a positive shift in its market positioning. The company is currently considered undervalued. Key ratios supporting this assessment include a Price to Earnings (PE) ratio of 11.19, an EV to EBITDA ratio of 6.31, and a robust Return on Capital Employed (ROCE) of 35.54%.
In comparison with peers, Petronet LNG's valuation stands out against Linde India, which has a PE ratio of 95.6, and Ellen. Indl. Gas, with a PE ratio of 74.15, both categorized as very expensive. Additionally, Confidence Petro, deemed very attractive, has a higher PE ratio of 14.74. Despite Petronet LNG's recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -20.86% compared to the Sensex's 8.22%, its attractive valuation metrics suggest potential for recovery and growth.