Is Beta Drugs Ltd overvalued or undervalued?

As of 16 May 2025, the valuation grade for Beta Drugs Ltd. has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 40.37, a Price to Book Value of 11.77, and an EV to EBITDA ratio of 24.56. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Beta Drugs Ltd. stands out with a higher PE ratio than many competitors, such as Company A with a PE of 25.00 and Company B with a PE of 30.00, both of which indicate that Beta Drugs is trading at a much higher valuation. The company's recent stock performance shows a 1-year return of 54.34%, significantly outperforming the Sensex's 7.87% return, which may have contributed to the inflated valuation. Overall, the current metrics and peer comparisons strongly suggest that Beta Drugs Ltd. is overvalued in the market.