Is Dr Agarwal's Hea overvalued or undervalued?

As of 7 August 2025, the valuation grade for Dr Agarwal's Healthcare has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 159.49, an EV to EBITDA of 30.86, and a Price to Book Value of 7.31. These figures indicate that the company's stock price is significantly elevated compared to its earnings and book value.
In comparison to its peers, Dr Agarwal's Healthcare's PE ratio is notably higher than that of Apollo Hospitals, which stands at 71.36, and Narayana Hrudaya at 45.91, both of which are categorized as expensive. Additionally, the company's ROE of 4.58% and ROCE of 9.79% suggest that it is not generating sufficient returns relative to its high valuation. Recent stock performance shows a decline of 5.78% over the past week, contrasting with a modest decline of 0.69% in the Sensex, reinforcing the view that the stock is overvalued in the current market context.