Is Polson overvalued or undervalued?

As of 1 July 2025, Polson's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued based on its financial ratios, with a PE ratio of 30.37, an EV to EBITDA of 13.21, and a PEG ratio of 8.94. In comparison to its peers, Godrej Industries, which is also rated attractive, has a significantly lower PE ratio of 41.44, while Solar Industries is categorized as very expensive with a PE ratio of 128.64.
Despite Polson's recent stock performance showing a 3.17% return over the past week compared to the Sensex's 2.00%, its year-to-date return of -1.23% suggests underperformance relative to the broader market. Overall, the combination of high valuation ratios and the recent downgrade in valuation grade points to Polson being overvalued in the current market environment.