Is Prospect Consum. overvalued or undervalued?

As of 18 September 2025, the valuation grade for Prospect Consum. has moved from expensive to very expensive. This indicates that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 22.60, an EV to EBITDA of 12.57, and a ROE of 9.45%.
When compared to peers, Prospect Consum.'s PE ratio is significantly lower than Hind. Unilever's 57.16 and Nestle India's 77.55, both of which are also classified as very expensive. Despite this, the overall valuation suggests that Prospect Consum. is not justified at its current price of 90.85, especially considering its recent stock performance, which has underperformed the Sensex with a 1-year return of -33.37% compared to the Sensex's 0.08%.