Is Dhanvantri Jeev. overvalued or undervalued?

As of 17 November 2025, Dhanvantri Jeev's valuation grade has moved from very attractive to risky, indicating a significant shift in its perceived investment quality. The company is currently overvalued, with a price-to-earnings (PE) ratio of 103.48, which is substantially higher than peers like Apollo Hospitals at 64.41 and Max Healthcare at 77.22. Additionally, the EV to EBITDA ratio stands at 9.21, which, while not excessively high, still reflects a premium compared to the industry average.
In terms of performance metrics, Dhanvantri Jeev has a return on equity (ROE) of 1.00% and a return on capital employed (ROCE) of -2.81%, both of which are concerning and suggest inefficiencies in generating returns relative to its equity and capital. The company's PEG ratio is 0.00, indicating no growth expectations factored into its valuation, further supporting the conclusion that it is overvalued. Despite recent stock performance showing a 23.17% return over the past year compared to the Sensex's 9.50%, the underlying financial ratios and peer comparisons suggest that investors should approach Dhanvantri Jeev with caution.