Is VST Industries overvalued or undervalued?

As of 23 May 2025, VST Industries has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 22.98, an EV to EBITDA of 15.86, and a dividend yield of 4.85%.
In comparison to its peers, VST Industries has a similar PE ratio to ITC at 22.42 but is significantly lower than Godfrey Phillips, which has a PE of 37.53. Notably, the PEG ratio for VST is 0.00, indicating no growth expectations priced in, which contrasts sharply with peers like ITC and Godfrey Phillips that have higher growth expectations. The recent stock performance has lagged behind the Sensex, with a year-to-date return of -15.10% compared to the Sensex's 5.63%, reinforcing the notion that the stock may be fairly valued in the current market context.