Is SDC Techmedia overvalued or undervalued?

As of 10 November 2025, the valuation grade for SDC Techmedia has moved from risky to very expensive. This indicates a significant shift in perception regarding the company's valuation. Based on the current metrics, SDC Techmedia appears to be overvalued. The company has a PE ratio of 34.32, an EV to EBITDA of 5.82, and a PEG ratio of 0.31, which suggests that the stock price is not justified by its earnings growth potential.
In comparison to its peers, SDC Techmedia's valuation stands out as very expensive, especially when compared to Prime Focus, which has a PE ratio of 71.22, and PVR Inox, which is currently fair at a PE of 10.08. The high valuation ratios of SDC Techmedia, particularly in the context of its peers, reinforce the conclusion that the stock is overvalued. Additionally, while the company has shown strong returns year-to-date at 93.31%, this performance contrasts sharply with the broader market, as evidenced by the Sensex return of only 6.91% in the same period.