Is Globus Spirits overvalued or undervalued?

As of 26 September 2025, the valuation grade for Globus Spirits has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 120.32, an EV to EBIT of 45.85, and an EV to EBITDA of 21.89. These figures suggest that the stock price does not align well with its earnings potential compared to its peers.
In comparison to its industry peers, Globus Spirits stands out with a significantly higher PE ratio than Varun Beverages at 52.8 and United Spirits at 60.15, both categorized as very expensive. Additionally, the PEG ratio for Globus is 0.00, which raises concerns about growth prospects relative to its price. While the stock has shown strong performance over the long term, with a 5-year return of 259.94% compared to the Sensex's 115.11%, the current valuation suggests that investors may be paying a premium that is not justified by the company's earnings growth.