Is Devyani Intl. overvalued or undervalued?

As of 18 June 2025, the valuation grade for Devyani International has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 1496.72, a price-to-book value of 18.90, and an EV to EBITDA ratio of 29.22. Compared to its peers, Devyani's PE ratio is significantly higher than Jubilant Food's PE of 200.5 and Page Industries' PE of 69, indicating a premium valuation relative to these competitors.
Despite the fair valuation, Devyani has shown weaker returns compared to the Sensex, with a year-to-date stock return of -5.75% against the Sensex's positive return of 4.23%. This underperformance, combined with its high valuation ratios, suggests that while the company is not overvalued, it may face challenges in achieving growth that justifies its current valuation.