Is ERIS Lifescience overvalued or undervalued?

As of 3 July 2025, the valuation grade for ERIS Lifescience has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 66.46, an EV to EBITDA of 25.24, and a Price to Book Value of 8.20, all of which are substantially higher than industry norms.
In comparison to its peers, ERIS Lifescience's PE ratio is notably higher than Sun Pharma's 35.23 and Cipla's 23.12, both of which are categorized as expensive and attractive, respectively. Additionally, while Divi's Lab is also classified as very expensive with a PE of 83.27, it still underscores ERIS's relative overvaluation. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 25.62% compared to the Sensex's 6.53%, further emphasizing the disconnect between its high valuation and market performance.