Is SDC Techmedia overvalued or undervalued?

As of 26 August 2025, SDC Techmedia's valuation grade has moved from very expensive to fair, indicating a significant shift in its market perception. The company is currently fairly valued, with a PE ratio of 9.83, an EV to EBITDA ratio of 5.79, and a PEG ratio of 0.09, suggesting that it may be undervalued relative to its growth prospects.
In comparison to its peers, SDC Techmedia's PE ratio is lower than PVR Inox, which has a PE of 10.92, and significantly lower than Prime Focus, which stands at 24.78. This positions SDC Techmedia as a more attractive option within the media and entertainment sector, especially considering its solid ROE of 19.04%. Additionally, the company's stock has outperformed the Sensex over various periods, including a 58.2% return year-to-date, reinforcing the notion that it is currently undervalued.