Is Gopal Snacks overvalued or undervalued?

As of 16 July 2025, Gopal Snacks has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 70.71, a Price to Book Value of 10.55, and an EV to EBITDA ratio of 44.30. These metrics indicate a significant premium compared to its peers, such as Hindustan Unilever with a PE of 56.76 and Nestle India at a PE of 76.7.
The valuation of Gopal Snacks is concerning, especially given its PEG ratio of 0.00, suggesting no growth expectations are priced in, which is unusual for a company in the FMCG sector. Additionally, while the stock has outperformed the Sensex over the past year with a return of 10.29% compared to the Sensex's 2.38%, the high valuation ratios indicate that the current price may not be sustainable in the long term.