Is V-Guard Industri overvalued or undervalued?

As of 23 July 2025, the valuation grade for V-Guard Industries has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios reflect this assessment, with a PE ratio of 56.53, an EV to EBITDA of 34.67, and a Price to Book Value of 8.45, all of which are significantly higher than industry norms.
In comparison to its peers, V-Guard's PE ratio is notably higher than that of Metro Brands at 94.04 and Bata India at 66.91, which are also categorized as expensive. The PEG ratio of 2.66 further underscores the high valuation relative to growth expectations. While V-Guard has outperformed the Sensex in the short term, with a 1-week return of 3.13% compared to the Sensex's 0.11%, its year-to-date performance of -3.88% suggests that the market may be reassessing its growth potential amidst a backdrop of elevated valuations.