Is Saregama India overvalued or undervalued?

As of 26 August 2025, Saregama India has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 46.17, an EV to EBITDA of 30.62, and a PEG ratio of 9.46. In comparison, its peers such as Page Industries and Jubilant Food have significantly higher PE ratios of 66.18 and 162.1, respectively, indicating that Saregama's valuation is not as extreme as some competitors but still on the higher side.
Despite the recent stock performance showing a slight decline of 0.77% over the past week compared to a 1.05% drop in the Sensex, the overall valuation metrics suggest that Saregama India is not positioned favorably for growth at its current price of 479.30. With a dividend yield of only 0.94% and a ROE of 12.67%, the company appears to be overvalued relative to its earnings potential and peer performance.