Is Apollo Hospitals overvalued or undervalued?

As of 17 October 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 72.25, an EV to EBITDA of 37.13, and a ROE of 17.61%. In comparison to its peers, Max Healthcare and Fortis Health are both considered very expensive, with PE ratios of 97.05 and 88.45, respectively, highlighting that Apollo's valuation is more reasonable within the industry context. Despite the recent downgrade in valuation, Apollo Hospitals has shown strong stock performance, outpacing the Sensex with a 1-year return of 13.04% compared to the Sensex's 3.64%. This performance, along with its solid financial ratios, suggests that while the company is fairly valued, it remains a strong player in the hospital industry.