Is Prism Medico overvalued or undervalued?

As of 6 October 2025, Prism Medico's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its current market position. The company is fairly valued based on its financial metrics, which include a PE ratio of 12.97, an EV to EBITDA ratio of 12.90, and a Price to Book Value of 0.86. These ratios suggest that the company is not overpriced compared to its earnings and asset valuation.
In comparison to its peers, Prism Medico's PE ratio is significantly lower than that of Apollo Hospitals, which has a PE ratio of 69.82, indicating that Prism Medico is more reasonably priced within the industry. Other peers, such as Narayana Hrudaya, are also trading at much higher valuations, with a PE of 46.2. Notably, Prism Medico's ROE stands at 4.64%, which, while modest, is a positive sign compared to its negative ROCE of -0.53%. Despite recent underperformance against the Sensex over the past year, where it declined by 26.24% compared to a slight gain of 0.12% for the index, the current valuation suggests that Prism Medico may present an attractive opportunity for investors looking for value in the NBFC sector.