Is Eiko Lifescience overvalued or undervalued?

As of 2 July 2025, Eiko Lifescience's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 53.69, an EV to EBIT of 64.66, and a Price to Book Value of 1.41. These ratios significantly exceed those of its peers, such as Life Insurance, which has a PE ratio of 12.54 and an EV to EBITDA of 9.89, highlighting the premium at which Eiko is trading.
In comparison to other companies in the specialty chemicals sector, Eiko's PEG ratio of 0.80 suggests it may have growth potential, yet the high valuation ratios raise concerns about sustainability. Notably, while Eiko has outperformed the Sensex over the past year with a return of 23.27% compared to the Sensex's 5.00%, the long-term performance shows a decline over three years, which may reflect the risks associated with its current valuation.