Is Eiko Lifescience overvalued or undervalued?

As of 18 July 2025, Eiko Lifescience's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 53.21, an EV to EBITDA of 40.42, and a ROE of only 2.63%. These figures suggest that investors are paying a premium for earnings relative to the company's actual performance.
In comparison to its peers, Eiko Lifescience's valuation stands out unfavorably. For instance, Life Insurance has a PE ratio of 12.08 and EV to EBITDA of 9.48, both significantly lower than Eiko's metrics. Additionally, Bajaj Finserv, categorized as expensive, has a PE of 36.56 and an EV to EBITDA of 13.5, further emphasizing Eiko's overvaluation. While the stock has outperformed the Sensex in the short term, with a 1-month return of 13.82% compared to the Sensex's 0.38%, the long-term outlook remains concerning given the high valuation ratios.