Is Godfrey Phillips overvalued or undervalued?

Jun 09 2025 04:04 PM IST
share
Share Via
As of May 16, 2025, Godfrey Phillips is considered overvalued with a valuation grade of expensive, reflected in its high PE ratio of 37.53 and other elevated valuation metrics compared to peers like ITC and VST Industries, despite a strong annual return of 116.36%.
As of 16 May 2025, the valuation grade for Godfrey Phillips has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 37.53, an EV to EBITDA of 36.44, and a PEG ratio of 1.37, which are significantly higher than its peers. For instance, ITC has a PE ratio of 22.42 and VST Industries stands at 22.98, indicating that Godfrey Phillips is trading at a premium compared to these competitors.

Despite a strong return of 116.36% over the past year compared to the Sensex's 7.61%, the elevated valuation ratios suggest that the stock may not be justified at its current price of 8,311.60. The company's high EV to EBIT of 41.28 and a Price to Book Value of 8.12 further reinforce the notion that it is overvalued in the current market context.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News
Most Read
Why is Vishal Mega Mart falling/rising?
4 minutes ago
share
Share Via
Why is Purple United falling/rising?
4 minutes ago
share
Share Via
Why is Waaree Energies falling/rising?
5 minutes ago
share
Share Via
Why is Gala Precis. Eng falling/rising?
5 minutes ago
share
Share Via
Why is Motherson Wiring falling/rising?
5 minutes ago
share
Share Via
Why is DCX Systems falling/rising?
5 minutes ago
share
Share Via
Why is Jana Small Finan falling/rising?
5 minutes ago
share
Share Via