Is Asston Pharmaceu overvalued or undervalued?

As of 29 August 2025, the valuation grade for Asston Pharmaceu has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key financial ratios include a PE Ratio of 19.46, EV to EBIT of 14.98, and ROE of 67.74%.
In comparison to its peers, Asston Pharmaceu's valuation stands out as very expensive, especially when compared to Sun Pharma with a PE of 33.34 and Divi's Lab at a staggering PE of 70.28. This suggests that while Asston shows strong returns on equity, it is priced significantly higher relative to its earnings potential compared to its peers. Additionally, the recent stock performance has lagged behind the Sensex, with a 1-month return of -15.85% compared to the Sensex's -1.88%, reinforcing the notion of overvaluation.