Is Biocon overvalued or undervalued?

As of 29 August 2025, the valuation grade for Biocon has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios include a PE ratio of 133.06, an EV to EBITDA of 18.46, and a PEG ratio of 0.00, which suggests that the stock may be undervalued relative to its earnings growth potential.
In comparison to its peers, Biocon's PE ratio stands in stark contrast to Sun Pharma's PE of 33.34 and Cipla's PE of 23.82, reinforcing the notion of its undervaluation. While Biocon has a higher EV to EBITDA ratio than some peers, its PEG ratio of 0.00 highlights a lack of growth expectations priced into the stock. Despite recent underperformance against the Sensex, with a year-to-date return of -4.68% compared to the Sensex's 2.14%, the overall valuation metrics suggest that Biocon presents a compelling investment opportunity.