Is Westlife Food overvalued or undervalued?

As of 2 September 2025, Westlife Food's valuation grade has moved from fair to attractive, indicating a shift in market perception. The company appears to be undervalued given its current price of 735.00, especially when considering its high PE ratio of 1137.09 and EV to EBITDA ratio of 40.03. In comparison to peers, Bajaj Finance has a PE ratio of 31.79 and Life Insurance boasts a much lower PE of 11.21, highlighting Westlife Food's significant premium.
Despite the attractive valuation grade, Westlife Food's financial metrics suggest caution, with a low ROE of 2.01% and a ROCE of 5.34%. The company's performance has lagged behind the Sensex over the past year, with a return of -10.67% compared to the Sensex's -2.91%. Overall, while the valuation grade suggests potential upside, the high ratios and recent performance indicate that Westlife Food may still be undervalued relative to its peers.