Is Apollo Hospitals overvalued or undervalued?

As of 2 June 2025, Apollo Hospitals has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 69.03, an EV to EBITDA ratio of 34.71, and a PEG ratio of 1.13. In comparison to its peers, Fortis Healthcare has a PE ratio of 68.71 and an EV to EBITDA of 37.55, while Max Healthcare is notably more expensive with a PE of 100.29 and an EV to EBITDA of 62.71.
Despite a recent dip in stock performance relative to the Sensex, where it has returned 14.92% over the past year compared to the Sensex's 7.62%, Apollo Hospitals' strong ROCE of 17.05% and ROE of 17.61% suggest solid operational efficiency. Overall, the valuation metrics indicate that Apollo Hospitals is positioned favorably within its industry, reinforcing its status as an attractive investment opportunity.