Is Sonam overvalued or undervalued?

As of 20 October 2025, the valuation grade for Sonam has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently deemed undervalued, with a PE ratio of 25.88, an EV to EBITDA of 29.87, and a Price to Book Value of 0.24. These ratios suggest that Sonam is trading at a discount compared to its earnings and book value, highlighting its potential for growth.
In comparison to its peers, Sonam's valuation metrics stand out. For instance, LG Electronics has a significantly higher PE ratio of 51.31 and an EV to EBITDA of 35.14, while Whirlpool India shows a PE ratio of 48.48 and an EV to EBITDA of 26.79. This positions Sonam favorably in the market, especially considering its PEG ratio of 0.00, which indicates no growth premium is being paid for its earnings. Despite recent underperformance against the Sensex, with a year-to-date return of -41.32% compared to the Sensex's 9.30%, the long-term outlook remains promising given its attractive valuation metrics.