Is Boston Beer Co., Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Boston Beer Co., Inc. moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears to be overvalued based on its current metrics, including a P/E ratio of 19, a Price to Book Value of 2.75, and an EV to EBITDA of 8.84. In comparison to peers, Brown-Forman Corp. has a P/E of 14.84, while Molson Coors Beverage Co. shows a P/E of 9.80, suggesting that Boston Beer Co. is trading at a premium relative to its industry counterparts.
Recent stock performance further underscores this valuation concern, as Boston Beer Co. has underperformed the S&P 500 across multiple time frames, with a year-to-date return of -25.39% compared to the S&P 500's 13.30%. This trend, along with its very expensive valuation grade, reinforces the conclusion that the stock is overvalued.