Is Devyani Intl. overvalued or undervalued?

As of 17 November 2025, the valuation grade for Devyani International has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios highlight this concern, with a staggering PE ratio of -569.29, a Price to Book Value of 11.33, and an EV to EBIT of 106.94. These figures suggest significant financial distress and a lack of profitability, which is further underscored by a negative ROE of -1.99%.
In comparison to its peers, Devyani International's valuation appears particularly unfavorable. For instance, Page Industries has a PE ratio of 57.64 and an EV to EBITDA of 39.40, while Sapphire Foods is rated fair with a PE of 2619.06 and an EV to EBITDA of 20.45. The stark contrast in these ratios reinforces the conclusion that Devyani International is overvalued. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -21.44% compared to the Sensex's positive return of 8.72%, further supporting the notion of overvaluation.