Is Monika Alcobev overvalued or undervalued?

As of 29 August 2025, the valuation grade for Monika Alcobev has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current metrics, with a PE Ratio of 27.44, an EV to EBITDA of 16.32, and an EV to Sales ratio of 3.19. These ratios suggest that investors are paying a premium for the stock relative to its earnings and sales.
In comparison to its peers, Monika Alcobev's PE ratio is notably lower than Varun Beverages at 57.61 and United Spirits at 60.59, both of which are also classified as very expensive. However, the high valuation grade of Monika Alcobev indicates that it is still perceived as overvalued in the current market environment. Additionally, the stock has shown a slight decline of 1.6% over the past week, which is in line with the Sensex's decline of 1.84%, reinforcing the notion of its overvaluation amidst broader market trends.