Is Alpa Laboratorie overvalued or undervalued?

As of 1 October 2025, the valuation grade for Alpa Laboratorie has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a PE ratio of 7.11, a Price to Book Value of 1.09, and an EV to EBITDA of 15.80. These ratios suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Alpa Laboratorie stands out with a much lower PE ratio than Sun Pharma, which is considered expensive at 34.22, and Divi's Lab, which has a PE of 65.66 and is classified as very expensive. Additionally, the PEG ratio for Alpa Laboratorie is 0.18, significantly lower than the industry average, reinforcing its undervaluation. Despite recent stock performance showing a decline compared to the Sensex over the past year, the long-term returns of 196.66% over five years highlight the company's potential for growth.