Is Shivam overvalued or undervalued?

As of 2 June 2025, the valuation grade for Shivam has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued, with a PE ratio of 37.71, an EV to EBITDA of 27.02, and a Price to Book Value of 6.11. These ratios suggest that Shivam's stock price is high relative to its earnings and book value, raising concerns about its valuation.
In comparison to its peers, Shivam's valuation appears excessive, especially when looking at Solar Industries India Ltd., which has a PE ratio of 123.77, and Godrej Industries Ltd., with a PE ratio of 46.63. This places Shivam in a challenging position within the FMCG sector, as it does not justify its premium valuation against competitors. Additionally, while Shivam has outperformed the Sensex over the past year with a return of 16.07% compared to the Sensex's 7.56%, the current valuation metrics suggest that investors should exercise caution.