Is Radico Khaitan overvalued or undervalued?

As of 30 June 2022, Radico Khaitan's valuation grade moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued, with a PE ratio of 102.23, an EV to EBITDA of 53.47, and a PEG ratio of 3.22, all of which are substantially higher than industry norms.
In comparison to its peers, Varun Beverages has a PE ratio of 57.96 and an EV to EBITDA of 32.43, while United Spirits shows a PE of 71.43 and an EV to EBITDA of 50.75, both of which highlight Radico Khaitan's premium valuation. Despite its strong stock performance, with a 1-year return of 53.86% compared to the Sensex's 7.65%, the company's elevated ratios suggest that it is trading at a premium that may not be justified by its fundamentals.