Is Deccan Healthcar overvalued or undervalued?

As of 6 October 2025, the valuation grade for Deccan Healthcar has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its current PE ratio of 42.12, an EV to EBITDA of 13.43, and a notably low EV to Book Value of 0.41. These ratios suggest that the market may not fully recognize the company's potential relative to its earnings and assets.
In comparison to its peers, Deccan Healthcar's valuation stands out; for instance, Sun Pharma has a PE ratio of 34.56 but is considered expensive, while Cipla, also rated attractive, has a significantly lower PE of 22.72. The PEG ratio of Deccan Healthcar is 0.00, which further emphasizes its undervaluation compared to peers like Divi's Lab, which is categorized as very expensive with a PEG of 1.78. Additionally, the company's stock has underperformed against the Sensex over various periods, which may contribute to its current attractive valuation status.