Is G M Breweries overvalued or undervalued?

As of 23 October 2025, G M Breweries' valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued. Key ratios include a PE Ratio of 20.06, an EV to EBITDA of 20.67, and a Price to Book Value of 3.06, which suggest that the company's stock price is not justified by its earnings or asset value.
In comparison to its peers, G M Breweries has a lower PE ratio than Varun Beverages at 55.25 and United Spirits at 62.71, yet it still falls within the very expensive category. The PEG Ratio stands at 0.00, which is notably low compared to peers like United Breweries, which has a PEG of 22.19. The stock has significantly outperformed the Sensex over various periods, with a YTD return of 55.01% compared to the Sensex's 8.21%, reinforcing the notion that while the stock may be overvalued, it has been rewarded by the market in recent times.