Is Cian Healthcare overvalued or undervalued?

As of 2 January 2025, Cian Healthcare's valuation grade has moved from attractive to does not qualify, indicating a significant deterioration in its investment appeal. The company appears to be overvalued based on its current metrics, with a PE ratio of 10.12, an EV to EBITDA ratio of 6.85, and an ROCE of only 3.60%. These figures suggest that the market may be pricing the stock higher than its fundamental performance warrants.
In comparison to peers, Cian Healthcare's PE ratio aligns closely with its own valuation grade, while its EV to EBITDA ratio is relatively low, indicating potential inefficiencies compared to competitors. Notably, the company has underperformed significantly over the past year, with a stock return of -82.71% against a Sensex return of 7.59%, further reinforcing the notion that it is overvalued at its current price of 4.05.