Is Dr Agarwal's Hea overvalued or undervalued?

As of 15 July 2025, the valuation grade for Dr Agarwal's Healthcare has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, supported by a PE ratio of 160.12, an EV to EBITDA of 30.98, and a Price to Book Value of 7.34. These ratios highlight a steep valuation compared to its peers.
In comparison, Max Healthcare, also classified as very expensive, has a PE ratio of 107.89 and an EV to EBITDA of 67.37, while Apollo Hospitals, rated as attractive, shows a more reasonable PE of 73.21 and an EV to EBITDA of 36.71. The stark differences in these ratios suggest that Dr Agarwal's Healthcare is not only overvalued relative to its direct competitors but also lacks the financial metrics that would justify such a high valuation. Notably, the stock has outperformed the Sensex over the past month, returning 15.53% compared to the Sensex's 1.79%, but this does not mitigate the concerns regarding its current valuation.