Is Ambey Laborator. overvalued or undervalued?

As of 17 September 2025, the valuation grade for Ambey Laborator. has moved from very expensive to expensive. This suggests a slight improvement in perceived value, yet the company remains on the higher end of the valuation spectrum. Based on the analysis, Ambey Laborator. appears to be overvalued given its current financial ratios, including a PE ratio of 21.48, an EV to EBIT of 21.25, and a ROE of 6.26%.
In comparison to its peers, UPL, which is rated attractive, has a significantly higher PE ratio of 39.58 and a much lower EV to EBITDA of 9.460, indicating that it is more favorably valued. Additionally, Dhanuka Agritech is also classified as expensive with a PE of 24.13, further emphasizing Ambey Laborator.'s overvaluation in the current market context. The company's stock has underperformed relative to the Sensex, with a year-to-date return of -35.45% compared to the Sensex's 7.13%, reinforcing the notion that it is overvalued in its sector.