Is Entero Healthcar overvalued or undervalued?

As of 20 June 2025, Entero Healthcare's valuation grade has moved from attractive to very attractive, indicating a significant reassessment of its market position. The company is currently considered undervalued, with a PE ratio of 51.31, an EV to EBITDA of 28.76, and a PEG ratio of 0.36, which suggests strong growth potential relative to its price.
In comparison to its peers, Entero Healthcare's PE ratio is notably higher than TCS at 25.59 and Infosys at 25.22, which are both in a lower valuation category. This indicates that while Entero is priced at a premium, its growth prospects may justify this valuation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -20.8% compared to the Sensex's 5.46%, further supporting the notion that it may be undervalued in the current market context.