Is Premier Energy overvalued or undervalued?

As of 28 May 2025, Premier Energy's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently considered overvalued, particularly given its PE ratio of 27.00, which is notably higher than peers like DLF Ltd. at 46.64 and Godrej Properties Ltd. at 53.1. Additionally, the EV to EBIT and EV to EBITDA ratios are both at -34.83, suggesting negative earnings performance, which further supports the overvaluation assessment.
In comparison to its peers, Premier Energy's PEG ratio is 0.00, while DLF Ltd. and Macrotech Development have PEG ratios of 0.65 and 0.79, respectively, indicating that Premier Energy lacks growth potential relative to its price. The company's ROE stands at 2.22%, which is low compared to the industry standards, and its recent stock performance has been poor, with a year-to-date return of -70.46%, contrasting sharply with the Sensex's gain of 5.56%. Overall, these factors reinforce the conclusion that Premier Energy is overvalued in the current market context.