Is Bayer CropSci. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Bayer CropSci. has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 38.24, an EV to EBITDA of 30.04, and a Price to Book Value of 7.95. Compared to peers, Bayer's valuation appears less attractive; for instance, UPL has a PE ratio of 37.91 and an EV to EBITDA of 9.14, while BASF India shows a PE of 47.93 with a lower EV to EBITDA of 28.64.
Despite the company's strong ROCE of 48.74% and ROE of 20.79%, the high valuation ratios suggest that the stock may not provide sufficient upside potential. Additionally, Bayer CropSci. has underperformed against the Sensex, with a year-to-date return of -9.24% compared to the Sensex's 7.44%. This performance further supports the view that the stock is overvalued in its current market context.