Is Aristo Bio-Tech overvalued or undervalued?

As of 12 June 2025, the valuation grade for Aristo Bio-Tech has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 19.79, an EV to EBITDA of 10.85, and a PEG Ratio of 4.82, all of which suggest that the stock is trading at a premium compared to its earnings and growth potential.
In comparison to peers, Aristo Bio-Tech's PE Ratio is notably lower than that of P I Industries, which stands at 35.96, and Bayer CropScience at 42.72, both categorized as very expensive. Additionally, UPL, which is rated attractive, has a PE Ratio of 38.12, further highlighting the relative overvaluation of Aristo Bio-Tech. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -11.28% compared to the Sensex's 5.26%, reinforcing the notion that the stock may not be justified at its current price level.