Is Source Natural overvalued or undervalued?

As of 29 August 2025, the valuation grade for Source Natural has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 28.13, an EV to EBITDA of 15.68, and a PEG ratio of 0.44, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Source Natural's PE ratio is lower than that of Sun Pharma at 33.34 and Divi's Lab at 70.28, both of which are categorized as expensive. Additionally, Source Natural's PEG ratio of 0.44 is significantly more attractive than Cipla's 1.12 and Mankind Pharma's 0, further supporting its undervalued status. Despite a challenging year with a stock return of -40.18%, Source Natural's long-term performance remains strong, with a remarkable 10-year return of 534.19%, significantly outpacing the Sensex's 202.40%.