Is Sapphire Foods overvalued or undervalued?

As of 8 October 2025, the valuation grade for Sapphire Foods has moved from attractive to fair. The company appears to be overvalued based on its high PE ratio of 388.43, an EV to EBIT of 104.90, and a Price to Book Value of 6.73. In comparison, its peers such as Page Industries, which has a PE ratio of 60.81, and Jubilant Food with a PE of 152.4, highlight the relative overvaluation of Sapphire Foods.
With a return on capital employed (ROCE) of only 4.57% and a return on equity (ROE) of 2.47%, the financial metrics suggest that the company is not generating sufficient returns to justify its current valuation. Additionally, the stock has underperformed against the Sensex in various time frames, including a YTD decline of 12.58% compared to the Sensex's gain of 4.65%. Overall, Sapphire Foods is considered overvalued in the current market environment.