Is Prospect Consum. overvalued or undervalued?

As of 18 November 2025, the valuation grade for Prospect Consum. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE Ratio of 22.61, an EV to EBITDA of 14.02, and a Price to Book Value of 1.86. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with peers, Prospect Consum.'s valuation stands out as it has a lower PE ratio than Hind. Unilever at 53.39 and Nestle India at 81.48, yet still reflects a very expensive status. The PEG ratio of 0.00 indicates no growth expectations priced into the stock, which is concerning given the current market dynamics. Notably, the company has underperformed against the Sensex, with a year-to-date return of -20.95% compared to the Sensex's 8.36%, reinforcing the view that it is overvalued in the current market environment.