Is Cian Healthcare overvalued or undervalued?

As of 20 June 2025, Cian Healthcare's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued given its negative PE ratio of -1.40, an EV to EBITDA of -16.71, and a ROE of -11.99%. These metrics suggest that the company's financial performance is underwhelming compared to its peers.
In comparison to its industry peers, Cian Healthcare's valuation stands out unfavorably. For instance, Sun Pharma has a PE ratio of 34.92 and an EV to EBITDA of 24.66, while Cipla shows a more attractive PE of 22.99 and an EV to EBITDA of 15.93. The stark contrast in these ratios highlights Cian Healthcare's struggles in generating value relative to its competitors. Additionally, the company's stock has underperformed significantly over the past year, with a return of -83.14% compared to the Sensex's 6.36%, reinforcing the notion that it is currently overvalued.