Is ERIS Lifescience overvalued or undervalued?

As of 5 September 2025, the valuation grade for ERIS Lifescience has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 60.82, an EV to EBITDA of 24.71, and a PEG ratio of 37.14, all of which are significantly higher than many peers in the industry.
In comparison, Sun Pharma has a PE ratio of 33.33 and an EV to EBITDA of 22.53, while Cipla presents a more attractive valuation with a PE of 23.25 and an EV to EBITDA of 16.37. These comparisons highlight that ERIS Lifescience's valuation metrics are on the higher end of the spectrum, reinforcing the conclusion of overvaluation. Additionally, despite a strong year-to-date return of 26.09% compared to the Sensex's 3.29%, the high valuation ratios suggest that the stock may not sustain its current price levels.