Is Prospect Consum. overvalued or undervalued?

As of 11 July 2025, the valuation grade for Prospect Consum. has moved from expensive to very expensive. The company is currently overvalued, with a PE ratio of 15.15, an EV to EBITDA of 8.36, and a Price to Book Value of 2.57. In comparison to its peers, Hind. Unilever has a significantly higher PE ratio of 56.84, while Nestle India stands at 74.9, indicating that Prospect Consum. is trading at a lower valuation multiple despite its very expensive classification.
The company's recent stock performance has been notably poor, with a year-to-date return of -38.95%, contrasting sharply with a Sensex return of 5.58% over the same period. This underperformance further reinforces the view that Prospect Consum. is overvalued in the current market environment.