Is Prospect Consum. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Prospect Consum. has moved from very expensive to expensive. The company appears to be overvalued based on its current financial metrics. The PE ratio stands at 16.17, while the EV to EBITDA ratio is 8.89, and the ROE is reported at 16.97%.
In comparison to its peers, such as Britannia Inds. with a PE of 59.03 and an EV to EBITDA of 40.53, and Dabur India with a PE of 51.17 and an EV to EBITDA of 38.40, Prospect Consum. is positioned at a significantly lower valuation. Despite this, its valuation remains high relative to the industry, indicating a potential overvaluation. The company's stock has underperformed significantly, with a year-to-date return of -34.84%, contrasting sharply with the Sensex's positive return of 3.08% over the same period.