Is VST Industries overvalued or undervalued?

As of 17 November 2025, VST Industries' valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 19.52, an EV to EBITDA of 13.88, and a dividend yield of 3.92%.
In comparison to its peers, VST Industries has a lower PE ratio than ITC, which stands at 21.46 and is considered expensive, while NTC Industries is rated very attractive with a PE of 14.26. Despite the fair valuation, VST Industries has underperformed the Sensex significantly over the past year, with a stock return of -18.52% compared to the Sensex's 9.50% return. This underperformance may suggest that the market has not fully recognized the company's value relative to its peers.