Is Coral Labs. overvalued or undervalued?

As of 10 February 2025, Coral Labs. has moved from a fair to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 8.86, an EV to EBITDA of 5.03, and a PEG ratio of 0.16, indicating strong growth potential relative to its price. In comparison to its peers, Coral Labs. stands out with significantly lower valuation metrics; for instance, Sun Pharma has a PE ratio of 35.25 and an EV to EBITDA of 24.91, while Divi's Lab shows a PE ratio of 79.33 and an EV to EBITDA of 57.35.
Despite recent underperformance relative to the Sensex, with a year-to-date return of -20.83% compared to the Sensex's 5.66%, Coral Labs.'s strong fundamentals, including a ROCE of 15.78% and ROE of 13.93%, suggest that it is well-positioned for future growth. Overall, the valuation metrics indicate that Coral Labs. is undervalued in the current market landscape.