Is Gopal Snacks overvalued or undervalued?

As of 18 July 2025, the valuation grade for Gopal Snacks has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company remains overvalued in the current market context. Key ratios reveal a PE ratio of 68.61, an EV to EBITDA of 42.98, and a Price to Book Value of 10.23, all of which are significantly higher than industry norms.
In comparison to peers, Gopal Snacks' PE ratio is notably higher than Hindustan Unilever at 56.18 and Britannia Industries at 63.04, both of which are also categorized as expensive. The company's PEG ratio stands at 0.00, suggesting that it may not be growing at a rate that justifies its high valuation. While Gopal Snacks has outperformed the Sensex over the past year with a return of 6.78% compared to the Sensex's 0.51%, the overall valuation metrics suggest that it is still overvalued relative to its peers and market conditions.