Is Apollo Hospitals overvalued or undervalued?

As of 17 October 2025, Apollo Hospitals' valuation grade has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 72.25, an EV to EBITDA of 37.13, and a ROE of 17.61%. In comparison to its peers, Max Healthcare has a significantly higher PE ratio of 97.05, while Fortis Health shows an even higher PE of 88.45, indicating that Apollo is relatively more reasonably priced within its competitive landscape.
Despite the fair valuation, Apollo Hospitals has demonstrated strong performance, with a year-to-date return of 8.36%, outperforming the Sensex's return of 7.44%. This performance, along with its solid ROCE of 17.05%, suggests that while the stock is fairly valued, it may still offer growth potential relative to its peers in the healthcare sector.