Is Sportking India overvalued or undervalued?

As of 1 April 2025, the valuation grade for Sportking India has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key financial ratios include a PE ratio of 13.67, an EV to EBITDA of 7.90, and a PEG ratio of 0.25, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Sportking India stands out with a much lower PE ratio than K P R Mill Ltd, which has a PE of 47.51, and Trident, which has a PE of 42.6. Additionally, Sportking's EV to EBITDA ratio of 7.90 is significantly more attractive than that of many competitors, reinforcing its undervaluation. Notably, Sportking India has outperformed the Sensex over the past year with a return of 45.55% compared to the Sensex's 7.60%, further supporting the case for its undervaluation.