Is Eighty Jewellers overvalued or undervalued?

As of 4 November 2025, the valuation grade for Eighty Jewellers has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 15.77, an EV to EBITDA of 12.42, and a PEG ratio of 0.55, which suggest that while the earnings growth potential is favorable, the overall valuation remains high relative to its peers.
In comparison to its industry peers, Eighty Jewellers stands out with a PE ratio lower than Titan Company at 81.98 and Kalyan Jewellers at 67.38, both of which are also deemed expensive. However, it is important to note that its valuation is still classified as very expensive, which raises concerns about sustainability given its recent stock performance, which has underperformed the Sensex significantly, with a year-to-date decline of 39.08% compared to the Sensex's gain of 6.81%. This underperformance reinforces the notion that Eighty Jewellers may not justify its current valuation.