Is Prime Focus overvalued or undervalued?

As of 4 November 2025, the valuation grade for Prime Focus has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 75.12, an EV to EBITDA of 19.21, and a Price to Book Value of 18.24. These figures suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Prime Focus stands out with a significantly higher PE ratio than PVR Inox, which is attractive at a PE of 10.27, and Media Matrix, which is also expensive at a PE of 417.8. The PEG ratio of Prime Focus at 0.65 indicates potential growth, but the overall high valuation metrics point towards overvaluation. Notably, Prime Focus has outperformed the Sensex over the past year, returning 35.23% compared to the Sensex's 5.94%, which may reflect investor sentiment despite the high valuation.