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 increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 23.14, an EV to EBITDA of 12.37, and a PEG ratio of 5.64, all of which suggest that the stock is priced at a premium compared to its earnings growth potential.
In comparison to its peers, Aristo Bio-Tech's PE ratio is notably lower than that of UPL at 38.81 and Bayer CropScience at 40.59, both categorized as very expensive. This highlights a disparity in valuation within the industry, where companies with higher PE ratios are still considered attractive. Additionally, while Aristo Bio-Tech has outperformed the Sensex with a 1-year return of 28.79% compared to the Sensex's -0.35%, this does not mitigate its current overvaluation status.