Is SDC Techmedia overvalued or undervalued?

As of 10 October 2025, SDC Techmedia's valuation grade has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently deemed overvalued based on its financial metrics. Key ratios include a PE ratio of 13.30, an EV to EBITDA of 6.18, and a PEG ratio of 0.12, which suggests that despite a low growth expectation, the stock price is high relative to its earnings growth potential.
In comparison to its peers, SDC Techmedia's valuation stands out as particularly high, especially when compared to PVR Inox, which has a PE ratio of 10.63, and Prime Focus, which has a PE ratio of 28.6. The stark difference in valuation indicates that SDC Techmedia may not be justified at its current price level. Additionally, the company's impressive stock performance, with a year-to-date return of 114.11% compared to the Sensex's 5.58%, further complicates its valuation narrative, suggesting that market sentiment may be driving the stock price beyond its fundamental worth.