Is Apollo Hospitals overvalued or undervalued?

As of 17 October 2025, Apollo Hospitals has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 72.25, an EV to EBITDA of 37.13, and a PEG ratio of 1.39. In comparison to its peers, Max Healthcare has a significantly higher PE ratio of 97.05, while Fortis Health stands at 88.45, indicating that Apollo Hospitals is relatively more reasonably priced within the industry.
Despite the fair valuation, Apollo Hospitals has demonstrated strong performance, with a return of 13.04% over the past year, significantly outpacing the Sensex's return of 3.64%. This performance, combined with a solid ROCE of 17.05% and ROE of 17.61%, suggests that while the stock may not be undervalued, it is still a strong player in the healthcare sector.