Is Apollo Hospitals overvalued or undervalued?

As of 20 August 2025, Apollo Hospitals' valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 71.94, an EV to EBITDA of 36.98, and a ROE of 17.61%.
In comparison to its peers, Apollo Hospitals stands out with a lower PEG ratio of 1.39, while Max Healthcare and Fortis Health are significantly more expensive with PE ratios of 99.04 and 78.72, respectively. Despite its fair valuation, Apollo has outperformed the Sensex in various time frames, including a 1-year return of 18.05% compared to the Sensex's 1.31%, reinforcing its competitive position in the market.