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 market value. The company is currently considered 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 the low PEG, the overall valuation remains high relative to its earnings potential.
When compared to peers, SDC Techmedia's valuation stands out; for instance, PVR Inox has a PE ratio of 10.63 and is rated attractive, while Prime Focus, rated fair, has a much higher PE of 28.6. Additionally, City Pulse Multi is categorized as very expensive with an astronomical PE of 1886.5. The recent stock performance of SDC Techmedia has outpaced the Sensex, with a year-to-date return of 114.11% compared to the Sensex's 5.58%, reinforcing the narrative of overvaluation despite strong market performance.