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 indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Prime Focus stands out with a much higher PE ratio than PVR Inox, which is at 10.27, and Media Matrix, which has a PE of 417.8. The PEG ratio for Prime Focus is 0.65, suggesting growth potential, but this is overshadowed by its high valuation compared to the industry. Notably, Prime Focus has outperformed the Sensex in various time frames, including a 35.23% return over the past year, reinforcing the notion that while the stock has shown strong performance, its current valuation remains excessive.