Is G M Breweries overvalued or undervalued?

As of 28 October 2025, G M Breweries has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 19.30, an EV to EBIT of 20.56, and a Price to Book Value of 2.94. Compared to its peers, G M Breweries exhibits a significantly lower PEG ratio of 0.00, while Varun Beverages and United Spirits have much higher PE ratios of 53.89 and 63.24, respectively.
The valuation metrics suggest that G M Breweries is not only overvalued in the context of its own financials but also when compared to its industry peers, indicating a disconnect between its current market price and intrinsic value. Notably, the company's stock has outperformed the Sensex significantly over the past year, with a return of 53.70% compared to the Sensex's 5.78%, which may have contributed to its inflated valuation.