Is Prime Focus overvalued or undervalued?

As of 13 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 70.76, an EV to EBITDA of 18.37, and a Price to Book Value of 17.18. 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 has a PE of 9.89, and Media Matrix, which has a PE of 383.46. The PEG ratio of Prime Focus at 0.61 indicates potential growth, but the high valuation metrics suggest that the stock may not be a sound investment at its current price of 168.15. Notably, while the company has outperformed the Sensex over the past year with a return of 29.85% compared to the Sensex's 8.74%, the current valuation raises concerns about sustainability moving forward.