Is Westlife Food overvalued or undervalued?

As of 4 November 2025, Westlife Food's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, as evidenced by its staggering PE ratio of -4274.87, a Price to Book Value of 15.12, and an EV to EBITDA ratio of 33.64. These figures suggest that the stock is trading at a premium compared to its earnings and book value, which raises concerns about its valuation sustainability.
In comparison to its peers, Westlife Food's valuation stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 37.67, while Life Insurance boasts a more attractive PE of 11.76. The significant disparity in these ratios highlights Westlife Food's overvaluation relative to its competitors in the leisure services industry. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -26.23% compared to the Sensex's 6.81%, further reinforcing the notion that the stock is not a favorable investment at its current price of 585.00.