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 considered overvalued. 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 some attractive metrics, the overall valuation does not justify the current price levels.
In comparison to its peers, SDC Techmedia's PE ratio is lower than that of Prime Focus, which stands at 28.6, but significantly higher than PVR Inox, which is currently loss-making and has a PE of 10.63. Additionally, City Pulse Multi is categorized as very expensive with a staggering PE of 1886.5, further highlighting the relative valuation concerns for SDC Techmedia. Notably, the company's stock has outperformed the Sensex, with a year-to-date return of 114.11% compared to the Sensex's 5.58%, but this strong performance does not mitigate the overvaluation risk.