Is Eighty Jewellers overvalued or undervalued?

As of 4 November 2025, the valuation grade for Eighty Jewellers has moved from expensive to very expensive. This indicates a significant shift in perception regarding the company's valuation, suggesting that it is now considered overvalued. The company currently has a PE ratio of 15.77, an EV to EBITDA ratio of 12.42, and a PEG ratio of 0.55, which, while relatively attractive in isolation, do not justify the very expensive classification when compared to peers.
In comparison, Titan Company and Kalyan Jewellers have PE ratios of 81.98 and 67.38, respectively, indicating that Eighty Jewellers is priced more conservatively relative to these competitors. However, with the current valuation being classified as very expensive, it suggests that the market may be overestimating the company's growth potential. Additionally, the stock has underperformed significantly against the Sensex, with a year-to-date return of -39.08% compared to the Sensex's 6.81%. Overall, Eighty Jewellers appears to be overvalued in the current market context.