Is Prime Focus overvalued or undervalued?

As of 29 May 2025, the valuation grade for Prime Focus has moved from expensive to attractive, indicating a significant shift in its market perception. The company is currently considered undervalued. Key ratios include a PE ratio of 1147.67, an EV to EBITDA of 10.22, and a ROCE of 5.33%.
When compared to peers in the media and entertainment industry, Prime Focus's PE ratio stands out against the industry average, while its EV to EBITDA ratio of 10.22 is more favorable than many competitors. Notably, the company has outperformed the Sensex in the past year with a return of 25.99% compared to the Sensex's 7.61%. This performance reinforces the attractiveness of the current valuation.