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 deterioration in its valuation outlook. The company appears to be overvalued, particularly when considering its P/E ratio of 19, which is higher than the peer average of 17.28 for similar companies like Brown-Forman Corp. and Molson Coors Beverage Co. Additionally, the EV to EBITDA ratio stands at 8.84, again above the peer average of 8.18, and the PEG ratio of 0.65 suggests that the stock is not priced attractively relative to its growth prospects.
In comparison to its peers, Boston Beer Co., Inc. is positioned unfavorably, with both Brown-Forman Corp. and Molson Coors Beverage Co. exhibiting lower valuation ratios. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -25.39% compared to the index's positive return of 13.30%. This trend reinforces the notion that Boston Beer Co., Inc. is overvalued in the current market environment.