Is Parag Milk Foods overvalued or undervalued?

As of 15 October 2024, the valuation grade for Parag Milk Foods has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 21.30, an EV to EBITDA of 12.09, and a PEG ratio of 0.68, all of which suggest that the stock is trading at a favorable valuation relative to its earnings growth potential.
In comparison to its peers, Parag Milk Foods stands out with a PE ratio of 21.30, while its closest competitor has a PEG ratio of 0.68, highlighting its competitive positioning in the FMCG sector. The company's return performance has also been impressive, with a 1-year stock return of 17.68% compared to a 7.59% return for the Sensex, reinforcing the notion that it is currently undervalued in the market.