Is Aristo Bio-Tech overvalued or undervalued?

As of 19 September 2025, the valuation grade for Aristo Bio-Tech has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with a PE Ratio of 23.14, an EV to EBITDA of 12.37, and a PEG Ratio of 5.64. These ratios 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, UPL, which is rated attractive, has a PE Ratio of 38.81, while BASF India, also attractive, has a PE Ratio of 49.41. In contrast, Aristo's ratios indicate that it is not only more expensive than some peers but also lacks the growth metrics that would justify such a valuation. Additionally, despite a recent positive stock performance, with a 1-year return of 28.79% compared to a -0.35% return for the Sensex, the overall valuation suggests that Aristo Bio-Tech is overvalued in the current market context.