Is Accretion Pha. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Accretion Pharmaceuticals has moved from expensive to very expensive. This indicates a shift towards a more negative outlook on the company's valuation. Based on the analysis, Accretion Pharmaceuticals is currently overvalued. The company has a PE ratio of 11.21, an EV to EBITDA of 7.59, and a PEG ratio of 0.00, which suggests that despite strong profitability metrics such as a ROCE of 37.87% and ROE of 44.42%, the valuation multiples are not justified when compared to its peers.
In comparison to its peers, Accretion's PE ratio is significantly lower than that of Sun Pharma, which stands at 36.49, and Divi's Lab at 69.65, both categorized as very expensive. Additionally, the EV to EBITDA ratio of 7.59 is lower than the ratios of Torrent Pharma at 33.11 and Divi's Lab at 52.35, reinforcing the notion that Accretion is overvalued relative to its industry. Furthermore, while Accretion has shown strong stock performance recently, with a 1-week return of 19.76% compared to the Sensex's 1.64%, this does not mitigate the concerns regarding its current valuation.