Is Alpa Laboratorie overvalued or undervalued?

As of 17 November 2025, the valuation grade for Alpa Laboratorie has moved from very attractive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 9.02, an EV to EBIT of -9.06, and an EV to EBITDA of -29.26, which suggest that the company's earnings and cash flows are under pressure.
In comparison to its peers, Alpa Laboratorie shows a stark contrast with Sun Pharma, which has a PE Ratio of 36.69 and an EV to EBITDA of 24.22, and Cipla, with a PE Ratio of 22.81 and an EV to EBITDA of 16.14. These comparisons highlight that Alpa Laboratorie is lagging behind its industry counterparts in terms of valuation metrics. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -33.37% compared to the Sensex's 8.72%, reinforcing the notion of its overvaluation.