Is Aveer Foods overvalued or undervalued?

As of 4 July 2025, Aveer Foods has moved from a fair to an expensive valuation grade, indicating that it is currently overvalued. The company's PE ratio stands at 80.77, while its Price to Book Value is 15.93 and EV to EBITDA is 40.35. These ratios suggest a high valuation compared to its earnings and book value, which raises concerns about sustainability.
In comparison to its peers, Aveer Foods' PE ratio is significantly higher than Hindustan Unilever's 52.77 and Britannia Industries' 63.28, both of which are also considered expensive. The PEG ratio for Aveer Foods is 0.38, which is relatively low, but the overall high valuation metrics indicate that the stock may not justify its current price. Despite a strong performance against the Sensex, with a 1-year return of 59.92% compared to the Sensex's 4.23%, the valuation suggests that Aveer Foods is overvalued at this time.