Is Som Distilleries overvalued or undervalued?

As of 30 May 2025, the valuation grade for Som Distilleries has moved from attractive to very attractive, indicating a strong positive shift in its market perception. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE ratio of 29.19, an EV to EBITDA of 17.62, and a PEG ratio of 1.65, which are favorable compared to its peers.
In comparison, Varun Beverages and United Spirits are considered very expensive, with PE ratios of 57.96 and 71.43, respectively, highlighting Som Distilleries' relative value. Additionally, the company's recent stock performance has significantly outpaced the Sensex, with a year-to-date return of 38.11% compared to the Sensex's 5.59%, reinforcing the notion that Som Distilleries is currently undervalued in the market.