Is Megastar Foods overvalued or undervalued?

As of 17 October 2025, Megastar Foods has moved from a very attractive to a fair valuation grade. The company appears to be overvalued based on its current financial ratios, including a PE Ratio of 52.14, an EV to EBITDA of 14.41, and a PEG Ratio of 7.85. These figures suggest that the stock is priced at a premium compared to its earnings growth potential.
In comparison to its peers, Megastar Foods' valuation metrics are notably higher than those of Hindustan Unilever, which has a PE Ratio of 57.55 and an EV to EBITDA of 40.63, and Nestle India, which has a PE Ratio of 83.02 and an EV to EBITDA of 51.05. While the stock has shown a positive return of 2.63% over the past week, it has underperformed the Sensex over the longer term, particularly with a 1-year return of -5% compared to the Sensex's 3.64%. Overall, Megastar Foods is currently overvalued in the market.