Is Aveer Foods overvalued or undervalued?

As of 11 July 2025, Aveer Foods has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 81.38, a Price to Book Value of 16.05, and an EV to EBITDA of 40.66. These ratios indicate a significant premium compared to its peers, such as Hindustan Unilever with a PE of 56.84 and Nestle India at 74.9, both categorized as very expensive.
In addition to its high valuation ratios, Aveer Foods has shown strong returns, outperforming the Sensex with a year-to-date return of 27.43% compared to the Sensex's 5.58%. However, despite its impressive growth, the current valuation metrics suggest that the stock is not justified at its current price of 795.95, reflecting an overvaluation in the FMCG sector.