Is Biocon overvalued or undervalued?

As of 29 August 2025, Biocon's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers. 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 growth prospects.
In comparison to its peers, Biocon stands out with a very attractive valuation, while Sun Pharma has a PE ratio of 33.34 and an EV to EBITDA of 22.54, categorizing it as expensive. Divi's Lab is classified as very expensive with a PE ratio of 70.28 and an EV to EBITDA of 51.52. Despite Biocon's recent stock performance trailing the Sensex, particularly with a YTD return of -4.68% compared to the Sensex's 2.14%, its valuation metrics suggest that it may present a compelling investment opportunity at current levels.