Is SDC Techmedia overvalued or undervalued?

As of 9 September 2025, SDC Techmedia's valuation grade has moved from risky to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE ratio of 10.32, an EV to EBITDA of 5.93, and a ROE of 19.04%.
In comparison with peers, PVR Inox, which is rated attractive, has a PE ratio of 10.9, while Prime Focus, rated fair, shows a much higher PE ratio of 32.17. The stark contrast in valuation metrics, especially with peers like City Pulse Multi, which is categorized as very expensive with an astronomical PE ratio of 1871.05, further underscores SDC Techmedia's overvaluation. Notably, the company's stock has significantly outperformed the Sensex over various periods, including a 66.04% return year-to-date, which may have contributed to its inflated valuation.