Is Zinema Media overvalued or undervalued?

As of 16 July 2025, Zinema Media's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued based on its financial ratios, which include a Price-to-Earnings (PE) ratio of 12.38, an EV to EBITDA ratio of 8.22, and a PEG ratio of 3.47. These metrics suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Zinema Media's valuation stands out as particularly high, especially when contrasted with Godrej Industries, which has a PE ratio of 39.24 and is rated as attractive. Other peers like Solar Industries and Gujarat Fluoroch are also categorized as very expensive, with PE ratios of 113.8 and 68.96, respectively. Despite Zinema Media's recent stock performance, which outpaced the Sensex with a year-to-date return of 31.72% compared to the Sensex's 5.75%, the current valuation suggests that investors may be overestimating its future growth potential.