Is Zodiac Energy overvalued or undervalued?

As of 12 November 2025, Zodiac Energy's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company appears to be undervalued based on its current metrics, with a PE ratio of 29.00, an EV to EBITDA of 17.55, and a PEG ratio of 0.50, suggesting that it is priced favorably relative to its growth prospects.
In comparison to its peers, Zodiac Energy stands out with a significantly lower PE ratio than Thermax, which has a PE of 61.43, and BEML Ltd, at 56.53, both categorized as expensive. This positions Zodiac Energy as an attractive investment opportunity within the construction industry. Notably, while the stock has underperformed the Sensex over the past year with a return of -32.55% compared to the Sensex's 7.36%, its strong fundamentals and favorable valuation metrics suggest potential for recovery and growth moving forward.