Is Credo Brands overvalued or undervalued?

As of 10 November 2025, the valuation grade for Credo Brands has moved from very attractive to attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 9.93, an EV to EBITDA of 4.84, and a dividend yield of 2.89%.
In comparison to its peers, Credo Brands stands out with a significantly lower PE ratio than Avenue Supermarts and Trent, which are both categorized as very expensive with PE ratios of 95.67 and 93.86, respectively. Additionally, Credo's EV to EBITDA ratio is much more favorable compared to its peers, indicating a better valuation position. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -40.68% versus the Sensex's 6.91%, the underlying fundamentals suggest that Credo Brands presents a compelling investment opportunity at its current price of 103.90.