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 overvalued based on its financial ratios, with a PE ratio of 19.46, an EV to EBIT of 14.98, and an EV to EBITDA of 14.76. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Asston Pharmaceu's valuation appears high, especially when looking at Sun Pharma with a PE of 33.34 and Divi's Lab at 70.28, both of which are categorized as very expensive. Other competitors like Cipla and Dr. Reddy's Labs, which are rated attractive, have lower PE ratios of 23.82 and 18.56, respectively. Additionally, the stock has underperformed against the Sensex over the past month, declining by 15.85% compared to a 1.88% drop in the index, reinforcing the notion that Asston Pharmaceu is currently overvalued.