Is Emcure Pharma overvalued or undervalued?

As of 15 September 2025, the valuation grade for Emcure Pharma has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 34.15, an EV to EBITDA of 17.00, and a Price to Book Value of 5.80, all of which are elevated compared to industry norms.
In comparison to its peers, Emcure Pharma's PE ratio is higher than Sun Pharma's 33.52 and significantly above Cipla's more attractive 23.18. Furthermore, while Emcure's PEG ratio stands at 0.00, indicating no growth expectations, Divi's Lab shows a much higher PEG of 1.84, reflecting better growth prospects. The stock has underperformed against the Sensex over various periods, including a year-to-date return of -5.97% compared to the Sensex's 4.67%, reinforcing the view that Emcure Pharma is overvalued in the current market context.