Is Goyal Salt overvalued or undervalued?

As of 5 September 2025, Goyal Salt's valuation grade has moved from very attractive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a PE ratio of 23.19, an EV to EBITDA of 27.27, and a Price to Book Value of 5.72. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Goyal Salt's PE ratio is notably lower than that of Hindustan Unilever, which stands at 58.11, and Nestle India, with a PE of 77.49, both of which are also classified as very expensive. Despite the lower PE, Goyal Salt's valuation remains elevated, especially when considering its PEG ratio of 0.58, which indicates growth potential relative to its price. Recent stock performance shows Goyal Salt outperforming the Sensex over the past week and month, but the longer-term YTD return of -10.65% highlights concerns about its sustainability at current valuation levels.