Is Allied Blenders overvalued or undervalued?

As of 16 May 2025, the valuation grade for Allied Blenders has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 61.43, an EV to EBIT of 34.49, and an EV to EBITDA of 29.63. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Allied Blenders has a higher PE ratio than Varun Beverages Ltd. at 57.96 and United Spirits Ltd. at 71.43, both of which are categorized as very expensive. Notably, the PEG ratio for Allied Blenders is 0.00, indicating a lack of growth expectations relative to its price. While the stock has outperformed the Sensex over the past week and month, with returns of 8.84% and 31% respectively, the overall valuation metrics indicate that Allied Blenders is not a compelling investment at its current price of 431.00.