Is Euro India Fresh overvalued or undervalued?

As of 30 June 2025, the valuation grade for Euro India Fresh has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a PE ratio of 114.53, an EV to EBITDA ratio of 50.93, and a Price to Book Value of 8.86. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Euro India Fresh's PE ratio far exceeds that of Hindustan Unilever at 51.76 and Nestle India at 76.79, both of which are also classified as very expensive. The PEG ratio of 0.74 indicates some growth potential, but the overall high valuation metrics raise concerns about sustainability. Notably, Euro India Fresh has outperformed the Sensex significantly over various periods, including a 1-year return of 82.53% compared to the Sensex's 6.27%, which may contribute to the heightened valuation sentiment.