Is Picturepost Stu. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Picturepost Studios has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios support this assessment, with a PE Ratio of 8.34, an EV to EBITDA of 4.50, and a ROCE of 22.63%.
In comparison to its peers, Picturepost Studios stands out with a lower PE ratio than Prime Focus, which has a PE of 30.98, while PVR Inox, categorized as attractive, is loss-making but has a higher EV to EBITDA of 10.78. The stark contrast in valuation metrics highlights the potential for upside in Picturepost Studios. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -52.48%, reinforcing the notion that it may be undervalued relative to its fundamentals.