Is Godfrey Phillips overvalued or undervalued?

As of 27 June 2025, the valuation grade for Godfrey Phillips has moved from expensive to very expensive. The company appears to be overvalued based on its high valuation ratios, including a PE ratio of 41.46, an EV to EBITDA ratio of 40.27, and a Price to Book Value of 8.97. In comparison, its peers such as ITC and VST Industries have significantly lower PE ratios of 22.32 and 24.18, respectively, indicating that Godfrey Phillips is trading at a premium relative to its competitors.
The company's current valuation suggests it is overvalued, particularly given its PEG ratio of 1.51, which is higher than the industry average. Additionally, while Godfrey Phillips has shown impressive stock performance with a year-to-date return of 73.44%, this strong performance does not justify its elevated valuation metrics when compared to its peers in the FMCG sector.