Is Saregama India overvalued or undervalued?

As of 22 August 2025, Saregama India's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its key financial ratios, including a PE Ratio of 47.20, an EV to EBITDA of 31.36, and a PEG Ratio of 9.68. These figures suggest that the stock price does not align with its earnings growth potential.
In comparison to its peers, Saregama India's valuation metrics are notably higher than those of Page Industries, which has a PE Ratio of 66.62 and an EV to EBITDA of 45.55, and Sapphire Foods, which is considered attractive with an EV to EBITDA of 24.83. The disparity in these ratios highlights that Saregama India is not only overvalued but also positioned unfavorably against its competitors in the media and entertainment industry. Despite a strong historical performance, with a 5-year return of 938.58% compared to the Sensex's 111.55%, the current valuation suggests caution for potential investors.