Is Accretion Pha. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Accretion Pharmaceuticals has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 11.21, an EV to EBITDA of 7.59, and a Price to Book Value of 4.98. When compared to peers, Accretion's PE ratio is significantly lower than that of Sun Pharma (36.49) and Divi's Lab (69.65), both of which are classified as very expensive.
Despite its strong return on equity (ROE) of 44.42% and return on capital employed (ROCE) of 37.87%, the high valuation grade suggests that the stock is priced excessively relative to its earnings potential. Recent performance shows Accretion's stock has outperformed the Sensex significantly over the past week with a return of 19.76% compared to the Sensex's 1.64%, but this does not mitigate the concerns regarding its current valuation.