Is Astonea Labs overvalued or undervalued?

As of 26 August 2025, Astonea Labs has moved from a valuation grade of very expensive to fair. The company is currently fairly valued based on its financial metrics. The PE ratio stands at 34.41, while the EV to EBITDA ratio is 14.96, and the ROE is notably high at 44.70%.
In comparison to its peers, Astonea Labs' valuation appears reasonable, especially when contrasted with Sun Pharma, which has a PE ratio of 33.48 and an EV to EBITDA of 22.63, and Divi's Lab, which is classified as very expensive with a PE ratio of 71.33. Astonea Labs has shown a slight decline in stock price recently, with a 1-week return of -2.15% compared to the Sensex's -1.05%, but it has outperformed the Sensex over the past month with a return of 1.83%. Overall, Astonea Labs is fairly valued within its industry context.