Is Concord Biotech overvalued or undervalued?

Jun 09 2025 04:44 PM IST
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As of August 21, 2023, Concord Biotech is considered very expensive and overvalued, with high valuation ratios significantly exceeding its peers, despite a strong 38.84% return over the past year.
As of 21 August 2023, Concord Biotech's valuation grade has moved from does not qualify to very expensive. The company is currently overvalued based on its high valuation ratios, including a PE ratio of 54.06, an EV to EBITDA of 39.12, and a PEG ratio of 2.41. These figures significantly exceed those of its peers, such as Sun Pharmaceutical Industries Ltd. with a PE of 35.25 and Divi's Laboratories Ltd. with an EV to EBITDA of 57.35.

In comparison to its peers, Concord Biotech's financial metrics suggest it is trading at a premium, indicating a lack of justification for its current price. While the company has shown strong returns over the past year, outperforming the Sensex with a 38.84% return compared to the Sensex's 7.53%, the overall valuation still reflects an overvalued status in the current market landscape.
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