Is Dr Agarwal's Eye overvalued or undervalued?

As of 30 October 2025, the valuation grade for Dr Agarwal's Eye has moved from fair to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 43.69, the Price to Book Value is 12.05, and the EV to EBITDA is 22.81, all of which are significantly higher than industry averages.
In comparison to its peers, Dr Agarwal's Eye's PE ratio is notably lower than Max Healthcare's 94.85 but higher than Apollo Hospitals' 71.16, indicating a premium valuation within the sector. The PEG ratio of 2.94 also suggests that the company's growth expectations are already priced in at a high level. Despite a strong historical performance with a 3-year return of 342.16%, the current valuation does not justify the price, especially considering the recent underperformance against the Sensex, with a year-to-date return of -14.72% compared to the Sensex's 8.02%.