Is Godrej Consumer overvalued or undervalued?

As of 8 October 2025, the valuation grade for Godrej Consumer has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE Ratio of 60.73, an EV to EBITDA of 38.94, and a Price to Book Value of 9.60. When compared to peers, Hindustan Unilever has a PE of 55.27, while Britannia Industries shows a PE of 63.81, indicating that Godrej Consumer's valuation remains higher than some of its competitors.
Despite a recent decline in stock price, with a 1-year return of -13.91% compared to a Sensex return of 0.17%, the company's elevated valuation metrics suggest it may not be a favorable investment at this time. The PEG ratio of 0.00 further highlights the lack of growth expectations priced into the stock, reinforcing the conclusion that Godrej Consumer is overvalued in the current market environment.