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 undervalued, with a price-to-earnings (PE) ratio of 8.34, an EV to EBITDA ratio of 4.50, and a return on equity (ROE) of 17.77%. These metrics suggest that the stock is trading at a discount compared to its earnings potential and asset value.
In comparison to its peers, Picturepost Studios stands out with a much lower PE ratio than Prime Focus, which has a PE of 30.98, and is significantly more attractive than City Pulse Multi, which is classified as very expensive with a PE of 1874.93. Additionally, the company's PEG ratio is 0.00, indicating that it is not only undervalued but also has substantial growth potential. Despite recent stock performance trailing the Sensex, with a year-to-date decline of 52.48% compared to a 7.11% gain in the index, the underlying financial ratios suggest that Picturepost Studios presents a compelling investment opportunity at its current price.