Is Apollo Hospitals overvalued or undervalued?

As of 19 August 2025, Apollo Hospitals has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 71.41, an EV to EBITDA of 36.72, and a PEG ratio of 1.38. In comparison to its peers, Apollo Hospitals stands out as relatively more attractive, especially when contrasted with Max Healthcare, which has a PE ratio of 99.6, and Fortis Health, with a PE ratio of 77.5.
The company's strong performance is further supported by a return on equity (ROE) of 17.61% and a return on capital employed (ROCE) of 17.05%. Notably, Apollo Hospitals has outperformed the Sensex over various time frames, including a 1-year return of 16.29% compared to the Sensex's 1.52%. This performance reinforces the notion that Apollo Hospitals is positioned well in the market, making it an attractive investment opportunity.