Is Aster DM Health. overvalued or undervalued?

As of 4 July 2025, the valuation grade for Aster DM Health has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 16.49, an EV to EBITDA of 43.86, and a PEG ratio of 0.02, which suggests that despite a relatively low PE, the high EV multiples indicate a premium valuation compared to earnings.
In comparison to peers, Aster DM Health's PE ratio is significantly lower than Max Healthcare's 111.05 and Apollo Hospitals' 75.13, but still higher than Fortis Health's 72.56. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 23.6% compared to the Sensex's 6.77%, reinforcing the notion that while the stock has performed well, its current valuation may not be justified given the high multiples relative to its earnings potential.