Is Thinking Hats overvalued or undervalued?

As of 17 November 2025, the valuation grade for Thinking Hats has moved from very attractive to fair. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 10.89, an EV to EBITDA of 8.16, and a ROCE of 15.91%.
In comparison to peers, Thinking Hats' PE ratio is significantly lower than that of Prime Focus, which has a PE of 88.08, indicating that Thinking Hats is more reasonably priced. Additionally, PVR Inox, which is considered attractive, has a PE ratio of 9.97, further supporting the notion that Thinking Hats is fairly valued within its industry. Despite the recent underperformance of Thinking Hats compared to the Sensex, with a year-to-date return of -24.97% versus the Sensex's 10.02%, the current valuation suggests stability in its pricing relative to its earnings potential.