Is VTM overvalued or undervalued?

As of 12 November 2025, the valuation grade for VTM has moved from fair to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 23.60, an EV to EBITDA of 15.26, and a PEG Ratio of 0.39, which suggests that while growth expectations may be high, the current price does not justify the earnings potential.
In comparison to its peers, VTM's valuation stands out as very expensive, especially when juxtaposed with K P R Mill Ltd, which has a PE Ratio of 44.49, and Trident, with a PE Ratio of 33.79. Notably, VTM has outperformed the Sensex in recent periods, with a 1-year return of 157.78% compared to the Sensex's 7.36%, but this strong performance does not mitigate the concerns regarding its current valuation level.