Is Sungold Media overvalued or undervalued?

As of 8 August 2025, the valuation grade for Sungold Media has moved from very expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is currently assessed as undervalued based on its key financial ratios. The PE ratio stands at 13.76, while the EV to EBITDA ratio is also at 12.34, and the PEG ratio is notably low at 0.28, suggesting potential for growth relative to its earnings.
In comparison to its peers, Sungold Media's PE ratio is higher than PVR Inox, which is at 10.50, but significantly lower than Prime Focus, which has an extraordinarily high PE of 1565.33. This positions Sungold Media in a relatively favorable light within the industry, especially considering its lower PEG ratio compared to the average of its peers. Despite recent underperformance against the Sensex, particularly with a year-to-date return of -36.82% compared to the Sensex's 2.20%, the valuation metrics suggest that there may be an opportunity for recovery and growth in the future.