Is Astonea Labs overvalued or undervalued?

As of 15 July 2025, Astonea Labs has moved from a grade of "does not qualify" to "very expensive." The company is currently overvalued, with a PE ratio of 34.77, a Price to Book Value of 15.55, and an EV to EBITDA of 15.08. In comparison to its peers, Sun Pharma has a PE ratio of 36.25 and an EV to EBITDA of 25.66, while Cipla shows a more attractive valuation with a PE ratio of 22.85 and an EV to EBITDA of 15.83.
The high valuation metrics of Astonea Labs suggest that the stock is trading at a premium compared to its industry peers, which reinforces the conclusion of overvaluation. Notably, the company has shown strong returns over the past week, outperforming the Sensex with a return of 21.19% compared to the Sensex's decline of 1.36%.