Is ERIS Lifescience overvalued or undervalued?

As of 20 June 2025, the valuation grade for ERIS Lifescience has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its high ratios, including a PE ratio of 62.77, an EV to EBITDA ratio of 23.96, and a Price to Book Value of 7.75.
In comparison to its peers, ERIS Lifescience's PE ratio significantly exceeds that of Sun Pharma at 34.92 and Cipla at 22.99, both of which are also classified as expensive but offer more attractive valuations. Notably, the company's PEG ratio stands at 0.00, which suggests no growth expectations are priced into the stock, further reinforcing its overvaluation status. While ERIS has outperformed the Sensex over the past year with a return of 57.4% compared to the Sensex's 6.36%, the current valuation metrics suggest that investors should approach with caution.