Is Source Natural overvalued or undervalued?

As of 7 November 2025, the valuation grade for Source Natural has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. The PE ratio stands at 29.64, the Price to Book Value is 4.14, and the EV to EBITDA ratio is 16.78.
In comparison to its peers, Source Natural's valuation appears moderate; for instance, Sun Pharma has a higher PE ratio of 35.17, while Cipla is more attractively valued at a PE of 22.33. Additionally, Source Natural's PEG ratio of 0.46 suggests growth potential relative to its price, although it remains in line with the industry. Notably, the company's stock has underperformed significantly over the past year, with a return of -41.04% compared to a 4.62% gain in the Sensex, reinforcing the notion that it may not be as attractive as previously thought.