Is Jubilant Agri overvalued or undervalued?

As of 22 September 2025, the valuation grade for Jubilant Agri has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 42.52, a Price to Book Value of 11.70, and an EV to EBITDA ratio of 26.39. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Jubilant Agri's PE ratio is lower than Hindustan Unilever's 56.84 and Nestle India's 76.15, but still reflects an expensive valuation relative to the industry. The company's ROCE stands at an impressive 32.86% and ROE at 27.52%, yet these strong returns do not justify the high valuation multiples. Notably, the stock has underperformed the Sensex over the past week and month, with returns of -11.91% and -13.74%, respectively, further reinforcing the notion that it may be overvalued in the current market environment.