Is BDH Industries overvalued or undervalued?

As of 16 October 2025, the valuation grade for BDH Industries has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued. Key financial ratios include a PE ratio of 28.67, an EV to EBITDA of 20.69, and a Price to Book Value of 3.98, all of which suggest that the stock is priced at a premium compared to its earnings and book value.
In comparison to its peers, BDH Industries' PE ratio is lower than that of Sun Pharma (34.69) but higher than Cipla (23.51), indicating a mixed standing within the industry. The PEG ratio of 0.00 suggests that there is no growth expected, which could further justify the overvaluation. Notably, while BDH Industries has outperformed the Sensex with a year-to-date return of 39.19% compared to the Sensex's 6.82%, this strong performance may not be sustainable given its current valuation metrics.