Is United Breweries overvalued or undervalued?

Nov 20 2025 08:05 AM IST
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As of November 19, 2025, United Breweries is fairly valued with a PE ratio of 120.95 and an EV to EBITDA of 60.81, despite underperforming the Sensex with a year-to-date return of -14.14%.
As of 19 November 2025, the valuation grade for United Breweries has moved from very expensive to fair. Based on the analysis, the company appears to be fairly valued at this time. Key ratios include a PE ratio of 120.95, an EV to EBITDA of 60.81, and a ROE of 8.81%.

In comparison to its peers, United Breweries has a significantly higher PE ratio than Varun Beverages at 51.7 and United Spirits at 59.84, both of which are classified as very expensive. Despite the high valuation metrics, the company's PEG ratio stands at 0.00, indicating potential growth at a reasonable price. Additionally, the stock has underperformed against the Sensex over various periods, notably with a year-to-date return of -14.14% compared to the Sensex's 9.02%, which reinforces the notion of its fair valuation amidst a challenging market environment.
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