Is Aveer Foods overvalued or undervalued?

As of 17 June 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 81.59, significantly higher than its peers, with Hindustan Unilever at 52.53 and Nestle India at 73.47. Additionally, Aveer Foods has an EV to EBITDA ratio of 40.76, which is also elevated compared to the industry averages, suggesting that investors are paying a premium for its earnings.
In terms of performance, Aveer Foods has shown a return of 62.67% over the past year, outperforming the Sensex's return of 5.96% in the same period. However, despite this strong performance, the high valuation ratios, including a Price to Book Value of 16.09 and a PEG ratio of 0.38, reinforce the conclusion that Aveer Foods is overvalued in the current market context.