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 perceived value. The company is currently considered undervalued, with a PE ratio of 11.19, an EV to EBITDA ratio of 6.31, and a dividend yield of 3.65%. These metrics suggest that Petronet LNG is trading at a lower valuation compared to its peers.
In comparison to its industry counterparts, Petronet LNG's valuation appears favorable. For instance, Linde India has a PE ratio of 95.6 and an EV to EBITDA of 55.59, while Ellen. Indl. Gas shows a PE of 74.15 and an EV to EBITDA of 57.52, both of which are significantly higher than Petronet LNG's ratios. Additionally, the company's return performance has lagged behind the Sensex over the past year, with a decline of 13.04% compared to the Sensex's gain of 9.00%. This underperformance, coupled with its attractive valuation metrics, reinforces the conclusion that Petronet LNG is currently undervalued in the market.