Is Studio LSD overvalued or undervalued?

As of 18 November 2025, the valuation grade for Studio LSD has moved from does not qualify to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued, particularly when considering its strong financial ratios. The PE ratio stands at 7.25, while the EV to EBITDA ratio is 5.16, both of which are substantially lower than those of its peers. The ROCE is an impressive 68.71%, and the ROE is 42.74%, showcasing the company's efficiency in generating returns.
In comparison to its peers, Studio LSD's valuation metrics are strikingly favorable. For instance, Prime Focus is categorized as expensive with a PE ratio of 86.17, and City Pulse Multi is deemed very expensive with a PE ratio of 1982.93. This stark contrast highlights Studio LSD's potential for growth and value. While the stock has underperformed relative to the Sensex over the past week and month, the overall valuation suggests that it may present a compelling buying opportunity for investors looking for value in the media and entertainment sector.