Is Deccan Healthcar overvalued or undervalued?

As of 17 September 2025, the valuation grade for Deccan Healthcar has moved from fair to attractive, indicating a more favorable assessment of the company's worth. The company is currently considered undervalued, especially when compared to its peers in the healthcare services industry. Key ratios include a PE ratio of 44.94, an EV to EBITDA of 14.39, and a Price to Book Value of 0.44, suggesting that while the PE ratio is high, the overall valuation metrics indicate potential for growth.
In comparison to its peers, Deccan Healthcar's valuation appears more appealing than that of Sun Pharma, which has a PE of 33.91 and is labeled as expensive, and Divi's Lab, which is very expensive with a PE of 69.72. Other attractive peers include Cipla with a PE of 23.36 and Dr. Reddy's Labs at 19.28, both of which present lower valuations. Despite Deccan Healthcar's recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -32.24% compared to the Sensex's 5.83%, the current valuation suggests that it may offer a compelling investment opportunity moving forward.