Is Deccan Healthcar overvalued or undervalued?

As of 22 September 2025, the valuation grade for Deccan Healthcar has moved from attractive to fair, indicating a shift in market perception. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 45.46, an EV to EBITDA of 14.56, and a Price to Book Value of 0.44, which suggest that while the company has a high earnings multiple, its asset valuation remains low relative to its market price.
In comparison to peers, Deccan Healthcar's PE ratio is significantly higher than that of Cipla, which has a PE of 23.1 and is considered attractive, while Sun Pharma is deemed expensive at a PE of 34.24. The company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it has returned -27.69% compared to the Sensex's -2.82%. This underperformance reinforces the notion that Deccan Healthcar may be fairly valued in the current market context.