Is Marico overvalued or undervalued?

As of 23 September 2025, the valuation grade for Marico has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued. Key ratios include a PE ratio of 54.88, an EV to EBITDA of 41.51, and a PEG ratio of 5.68, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Marico's PE ratio is lower than Hindustan Unilever's 55.64 but higher than Dabur India's 51.28, positioning it within a competitive range yet still on the higher end of the valuation spectrum. Notably, while Marico has outperformed the Sensex year-to-date with a return of 10.13% compared to the Sensex's 5.07%, its recent performance shows a decline in the last month, which may further support the view that the stock is overvalued in the current market context.