Is Eighty Jewellers overvalued or undervalued?

As of 1 October 2025, the valuation grade for Eighty Jewellers has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 17.37, an EV to EBITDA of 13.08, and a PEG ratio of 0.61, which indicate that while the company is generating earnings, its valuation remains high compared to its growth prospects.
In comparison to peers, Eighty Jewellers' PE ratio is significantly lower than that of Titan Company, which stands at 81.35, highlighting a stark contrast in valuation. Kalyan Jewellers also shows a higher PE at 59.95, reinforcing the notion that Eighty Jewellers is not only expensive but also lacks the growth potential seen in its peers. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -33.97% compared to the Sensex's 3.64%, further suggesting that the current valuation may not be justified.