Is ERIS Lifescience overvalued or undervalued?

As of 5 September 2025, the valuation grade for ERIS Lifescience has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 60.82, a Price to Book Value of 8.25, and an EV to EBITDA ratio of 24.71. In comparison, peers such as Sun Pharma have a PE ratio of 33.33 and an EV to EBITDA of 22.53, while Cipla is valued more attractively with a PE of 23.25 and an EV to EBITDA of 16.37.
Despite a strong performance with a year-to-date return of 26.09% compared to the Sensex's 3.29%, the elevated valuation ratios suggest that ERIS Lifescience is not a compelling investment at its current price of 1726.00. The company's PEG ratio of 37.14 further indicates that its growth prospects may not justify the high valuation, reinforcing the conclusion that it is overvalued in the current market environment.