Is Eiko Lifescience overvalued or undervalued?

As of 3 July 2025, Eiko Lifescience's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued, with a PE ratio of 59.99, an EV to EBITDA ratio of 46.29, and a PEG ratio of 0.89, which suggests that despite high growth expectations, the stock price may not be justified by its earnings growth potential.
In comparison to its peers, Eiko Lifescience's valuation metrics stand out unfavorably; for instance, Life Insurance has a PE ratio of 12.38 and an EV to EBITDA of 9.74, indicating a much more attractive valuation. Similarly, Bajaj Finserv, categorized as expensive, has a PE ratio of 35.66, which is significantly lower than Eiko's. While Eiko Lifescience has shown strong recent stock performance, outperforming the Sensex over various periods, this does not mitigate the concerns regarding its high valuation relative to industry peers.