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 categorized as very expensive. The PEG ratio of Alpa Laboratorie at 0.18 further emphasizes its undervaluation compared to the industry. Despite recent underperformance against the Sensex, particularly in the year-to-date return of -26.08% versus the Sensex's 3.64%, the long-term performance over five years shows a robust gain of 196.66%, suggesting potential for recovery and growth.