Is Eighty Jewellers overvalued or undervalued?

As of 7 July 2025, Eighty Jewellers has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial ratios, which include a PE Ratio of 24.81, an EV to EBITDA of 11.87, and a PEG Ratio of 0.86. These metrics suggest that the stock is priced significantly higher than its earnings growth potential.
In comparison to its peers, Eighty Jewellers stands out with a much higher PE Ratio than Titan Company at 97.58 and Kalyan Jewellers at 84.3, both of which are categorized as fair and expensive, respectively. This indicates that Eighty Jewellers is not only overvalued relative to its direct competitors but also has a lower return on equity (ROE) of 7.31% compared to the industry average. Despite a recent strong performance with a 1-month return of 25% against a Sensex return of 1.53%, the overall valuation suggests caution for potential investors.