Is Apollo Hospitals overvalued or undervalued?

As of 24 October 2025, Apollo Hospitals' valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company appears to be undervalued, especially when considering its key ratios: a PE ratio of 71.66, an EV to EBITDA of 36.84, and a ROE of 17.61%. In comparison, peers such as Max Healthcare and Fortis Health are categorized as very expensive, with PE ratios of 95.69 and 84.7, respectively, highlighting Apollo's relative valuation attractiveness. Despite a recent decline in stock price, with a 1-week return of -0.85% compared to the Sensex's 0.31%, Apollo Hospitals has shown strong performance over the longer term, with a 5-year return of 277.91% against the Sensex's 106.98%. This long-term outperformance, coupled with its strong financial metrics, reinforces the conclusion that Apollo Hospitals is currently undervalued in the market.