Is Emami overvalued or undervalued?

As of 10 November 2025, Emami has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 28.07, while the Price to Book Value is significantly higher at 8.52. Additionally, the EV to EBITDA ratio is 21.85, indicating a premium valuation compared to its earnings potential.
In comparison to its peers, Emami's PE ratio is lower than Hindustan Unilever's 53.51 and Nestle India's 81.47, both of which are categorized as very expensive. However, Emami's valuation remains high relative to the industry, with a PEG ratio of 2.82, suggesting that growth expectations may not justify the current price. Notably, Emami's stock has underperformed the Sensex over the past year, with a return of -21.36% compared to the Sensex's 5.09%, reinforcing the view that the stock is overvalued at its current price of 526.00.