Is Aristo Bio-Tech overvalued or undervalued?

As of 27 June 2025, the valuation grade for Aristo Bio-Tech has moved from very expensive to expensive, indicating a slight improvement in its valuation standing. The company is currently considered overvalued. Key ratios include a PE ratio of 18.87, an EV to EBITDA of 10.45, and a Price to Book Value of 2.28, which suggest that while the company has some profitability, its valuation metrics are still on the higher side compared to its peers.
In comparison to its industry peers, Aristo Bio-Tech's PE ratio of 18.87 is significantly lower than that of P I Industries at 37.95 and Bayer CropScience at 47.99, both categorized as very expensive. However, it is also higher than Sharda Cropchem, which is very attractive at a PE of 23.3. Notably, Aristo Bio-Tech has underperformed against the Sensex in the short term, with a year-to-date return of -15.38% compared to the Sensex's 8.43%, reinforcing the view that the stock may be overvalued in the current market context.