Is Aster DM Health. overvalued or undervalued?

As of 6 October 2025, Aster DM Health's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 96.46, a Price to Book Value of 10.16, and an EV to EBITDA ratio of 43.88. These figures suggest that the stock price is not justified by its earnings or asset values.
In comparison to its peers, Aster DM Health's valuation metrics stand out unfavorably; for instance, Apollo Hospitals has a PE ratio of 69.82 and an EV to EBITDA of 35.93, while Max Healthcare shows a PE of 91.59 and an EV to EBITDA of 56.77. The high PEG ratio of 0.00 for Aster DM Health further emphasizes its overvaluation relative to growth expectations. Additionally, the company's stock has significantly outperformed the Sensex, with a year-to-date return of 30.87% compared to the Sensex's 4.67%, which may be driving speculative interest but does not alter the fundamental overvaluation assessment.