Is Aristo Bio-Tech overvalued or undervalued?

As of 30 June 2025, the valuation grade for Aristo Bio-Tech has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company appears to be overvalued at this time. Key ratios include a PE Ratio of 19.81, an EV to EBITDA of 10.86, and a PEG Ratio of 4.83, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Aristo Bio-Tech's valuation stands out unfavorably. For instance, P I Industries has a PE Ratio of 37.61, and UPL, which is rated as attractive, has a PE Ratio of 39.81, both indicating higher valuations with potentially better growth prospects. Additionally, while Aristo Bio-Tech has shown a strong one-year return of 30.77% compared to the Sensex's 6.27%, its year-to-date performance of -11.17% versus the Sensex's 7.92% suggests that the market is reassessing its value. Overall, the combination of high valuation ratios and peer comparisons reinforces the conclusion that Aristo Bio-Tech is overvalued.