Is Biocon overvalued or undervalued?

As of 19 August 2025, Biocon's valuation grade has moved from attractive to very attractive, indicating a significant shift in its perceived value. The company is currently assessed as undervalued, particularly when considering its high PE ratio of 138.93, a price-to-book value of 2.24, and an EV to EBITDA ratio of 19.09. These ratios suggest that while the stock is trading at a premium, the underlying fundamentals may not fully justify such high valuations.
In comparison to its peers, Biocon stands out with its very attractive rating despite a significantly higher PE ratio than Sun Pharma (34.22) and Cipla (23.2), both of which are considered attractive. Additionally, Biocon's PEG ratio is notably low at 0.00, indicating potential for growth that is not reflected in its current price. While Biocon's recent stock performance has been mixed, with a year-to-date return of -0.47% compared to the Sensex's 4.49%, its long-term performance over 10 years shows a remarkable return of 355.75%, suggesting strong historical growth potential that may not be fully appreciated in the current market.