Is Prospect Consum. overvalued or undervalued?

As of 23 September 2025, the valuation grade for Prospect Consum. has moved from expensive to very expensive. The company appears to be overvalued at this time. Key ratios include a PE ratio of 23.13, an EV to EBITDA of 12.85, and a ROE of 9.45%.
In comparison to its peers, Prospect Consum. has a lower PE ratio than Hind. Unilever, which stands at 55.64, and Nestle India, with a PE of 74.77. The overall valuation landscape indicates that while many peers are also categorized as very expensive, Prospect Consum.'s ratios suggest it is not justified at its current price level. Notably, the stock has underperformed the Sensex over the past year, with a decline of 25.27% compared to a 3.33% drop in the index, reinforcing the overvaluation narrative.