Is Globus Spirits overvalued or undervalued?

As of 26 September 2025, the valuation grade for Globus Spirits has moved from very attractive to attractive. The company is currently considered overvalued based on its high PE ratio of 120.32, a Price to Book Value of 3.07, and an EV to EBITDA of 21.89. In comparison to its peers, Varun Beverages has a PE of 52.8 and United Spirits has a PE of 60.15, both of which indicate that Globus Spirits is trading at a significant premium relative to these competitors.
Despite a recent decline in stock price, with a 1-month return of -15.24% compared to the Sensex's -0.45%, Globus Spirits has shown a strong year-to-date performance of 20.92% against the Sensex's 2.93%. However, the overall valuation metrics suggest that the stock is not justified at its current price level, reinforcing the conclusion that it is overvalued in the current market environment.