Is Vision Cinemas overvalued or undervalued?

As of 4 November 2025, the valuation grade for Vision Cinemas has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios highlight this position, with a PE ratio of 55.24, an EV to EBITDA of 8.28, and a negative ROCE of -0.36%.
In comparison to peers, Vision Cinemas' PE ratio is notably higher than that of Panorama Studios, which stands at 30.19, and significantly lower than Prime Focus at 75.12. The company's financial performance has also been underwhelming, as evidenced by a negative ROE of -1.78%. Recent stock performance shows a 1-week return of 8.33%, outperforming the Sensex's -1.38%, but the longer-term outlook remains concerning with a year-to-date decline of 13.33%.