Is Dr Agarwal's Eye overvalued or undervalued?

As of 31 October 2025, the valuation grade for Dr Agarwal's Eye has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 40.18, an EV to EBITDA ratio of 16.40, and a Price to Book Value of 0.80. In comparison to its peers, Dr Agarwal's Eye's PE ratio is significantly lower than Max Healthcare's 92.62 and Apollo Hospitals' 70.17, indicating a more attractive valuation in the context of the industry.
Despite the fair valuation, Dr Agarwal's Eye has shown mixed performance against the Sensex, with a year-to-date return of -14.55% compared to the Sensex's 7.42%. However, over a three-year horizon, the company has outperformed the index with a remarkable return of 304.96%. This suggests that while the current valuation is fair, the stock may still hold potential for growth in the long term.