Is Apollo Hospitals overvalued or undervalued?

As of 7 July 2025, Apollo Hospitals' valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 75.58, an EV to EBITDA ratio of 37.84, and a PEG ratio of 1.24. Compared to its peers, Max Healthcare is considered very expensive with a PE of 111.3, while Fortis Health is also expensive with a PE of 72.38, suggesting that Apollo Hospitals maintains a relatively better valuation position within the industry.
Despite the fair valuation, Apollo Hospitals has demonstrated strong performance with a return of 20.10% over the past year, significantly outperforming the Sensex's return of 4.31% during the same period. The company's ROCE stands at 17.05% and ROE at 17.61%, reflecting solid operational efficiency. Overall, while the valuation has adjusted, Apollo Hospitals remains a competitive player in the healthcare sector.