Is Bajaj Healthcare overvalued or undervalued?

Jul 16 2025 08:02 AM IST
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As of July 15, 2025, Bajaj Healthcare is considered overvalued with a PE ratio of 39.18, higher than its peers, indicating caution for potential investors despite a strong 1-year return of 38.86%.
As of 15 July 2025, Bajaj Healthcare's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 39.18, an EV to EBITDA of 22.70, and a PEG ratio of 1.28, all of which suggest that the stock is trading at a premium compared to its earnings and growth potential.

In comparison to its peers, Bajaj Healthcare's PE ratio is higher than Sun Pharma's 36.25 and significantly above Cipla's attractive valuation of 22.85. This indicates that Bajaj Healthcare may not offer a compelling investment opportunity relative to its competitors. Despite a strong 1-year return of 38.86%, which outperformed the Sensex's 2.36%, the elevated valuation metrics suggest caution for potential investors.
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