Is Dr Agarwal's Hea overvalued or undervalued?

As of 16 July 2025, the valuation grade for Dr Agarwal's Health has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 159.81, an EV to EBITDA ratio of 30.92, and a ROCE of 9.79%. In comparison to its peers, Apollo Hospitals, which is rated attractive, has a significantly lower PE ratio of 73.13, while Max Healthcare is categorized as very expensive with a PE ratio of 108.56.
Despite a recent stock return of 12.84% over the past month, which outperformed the Sensex's 1.02%, the high valuation metrics indicate that Dr Agarwal's Health may not provide a favorable investment opportunity at its current price of 432.40. The company's high PE ratio and low ROE of 4.58% further reinforce the conclusion that it is overvalued in the current market environment.