Is Biocon overvalued or undervalued?

As of 2 June 2025, Biocon's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 41.57, an EV to EBITDA of 17.04, and a PEG ratio of 0.00, which suggests that the stock may be undervalued relative to its growth potential.
In comparison to its peers, Biocon's PE ratio is higher than Sun Pharma's 35.25 and significantly lower than Divi's Lab's 79.33, which is classified as very expensive. Additionally, Biocon's EV to EBITDA of 17.04 is more favorable compared to Sun Pharma's 24.91, reinforcing its attractive valuation. Despite recent underperformance relative to the Sensex, with a year-to-date return of -8.45% compared to the Sensex's 5.61%, the fundamentals suggest that Biocon presents a compelling investment opportunity.