Is Marico overvalued or undervalued?

As of 27 March 2025, Marico's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios supporting this assessment include a PE ratio of 55.60, an EV to EBITDA of 41.60, and a PEG ratio of 5.65, all of which are substantially higher than industry norms.
In comparison to its peers, Marico's PE ratio exceeds that of Hindustan Unilever at 53.88 and Britannia Industries at 61.44, both of which are also classified as expensive. Furthermore, Marico's EV to EBITDA ratio is higher than Hindustan Unilever's 37.14, suggesting that investors are paying a premium for its earnings relative to its competitors. While Marico has shown a positive year-to-date return of 9.04%, it still lags behind the Sensex's return of 5.64%, reinforcing the notion that it may be overvalued in the current market context.