Is Sungold Media overvalued or undervalued?

As of 4 September 2025, the valuation grade for Sungold Media has moved from risky to very expensive, indicating a significant deterioration in its perceived value. The company is currently overvalued, as evidenced by its PE ratio of 11.21, EV to EBIT of 9.79, and a PEG ratio of 0.22, which suggests that the stock price does not reflect its earnings growth potential adequately.
When compared to peers, Sungold Media's valuation stands out unfavorably; for instance, PVR Inox, despite being loss-making, has a PE ratio of 10.87, while Prime Focus, with a more favorable PEG ratio of 0.17, indicates better growth prospects. Additionally, City Pulse Multi is categorized as very expensive with a staggering PE ratio of 1916.75, further highlighting the disparity in valuations within the industry. The recent stock performance has been poor, with a year-to-date return of -48.54% compared to a positive 3.30% return for the Sensex, reinforcing the notion that Sungold Media is overvalued in the current market landscape.