Is Euro India Fresh overvalued or undervalued?

As of 16 May 2025, the valuation grade for Euro India Fresh has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting a high valuation. The company is currently considered overvalued. Key ratios include a PE Ratio of 98.05, an EV to EBITDA of 44.05, and a PEG Ratio of 0.63, which reflects a premium valuation compared to its earnings growth potential.
In comparison to peers, Euro India Fresh's PE Ratio significantly exceeds that of similar companies in the FMCG sector, which typically range lower, indicating that it may be overpriced relative to its earnings. For instance, if we consider a peer with a PE Ratio of around 30, Euro India Fresh's valuation appears excessive. Additionally, while the stock has outperformed the Sensex over various periods, including a 65.52% return over the past year compared to the Sensex's 7.84%, this strong performance does not necessarily justify its current high valuation metrics.