Is Hoac Foods overvalued or undervalued?

As of 28 August 2025, the valuation grade for Hoac Foods has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 34.47, an EV to EBITDA of 21.41, and an EV to Sales ratio of 3.32, all of which suggest that the stock is priced at a premium compared to its earnings and sales.
In comparison to peers, Hoac Foods' PE ratio is lower than Hindustan Unilever's 58.6 and Nestle India's 74.5, but it still reflects a high valuation within the FMCG sector. The PEG ratio stands at 0.00, which indicates no growth expectations priced into the stock, further emphasizing its overvaluation. Notably, while Hoac Foods has outperformed the Sensex year-to-date with a return of 34.38% compared to the Sensex's 3.62%, the recent declines in stock price suggest a potential correction may be on the horizon.