Is Accretion Pha. overvalued or undervalued?

As of 17 November 2025, the valuation grade for Accretion Pharmaceuticals has moved from very expensive to expensive, indicating a shift in market perception. The company is currently considered overvalued, with a PE ratio of 10.60, an EV to EBIT of 7.74, and an EV to EBITDA of 7.24. In comparison to its peers, Accretion's valuation metrics are significantly lower; for instance, Sun Pharma has a PE ratio of 36.69 and an EV to EBITDA of 24.22, while Divi's Lab shows even higher ratios at 69.78 and 52.44, respectively.
Despite the high return on capital employed (ROCE) at 37.87% and a return on equity (ROE) of 44.42%, the overall valuation suggests that Accretion is not positioned favorably against its peers in the pharmaceuticals sector. Recent stock performance has outpaced the Sensex, with a 1-week return of 9.28% compared to the Sensex's 1.72%, which may reflect short-term investor enthusiasm but does not alter the long-term valuation outlook.