Is Family Care overvalued or undervalued?

As of 29 October 2025, Family Care's valuation grade has moved from fair to risky, indicating a significant deterioration in its financial standing. The company is currently deemed overvalued, with a PE ratio of -3.62, an EV to EBITDA of -3.48, and a ROE of -47.73%. These figures suggest severe profitability issues, particularly when compared to its peers. For instance, Max Healthcare has a PE ratio of 96.03 and an EV to EBITDA of 59.47, while Apollo Hospitals shows a PE of 71.83 and an EV to EBITDA of 36.92, both indicating a stark contrast in financial health.
The company’s performance has been notably poor, with a year-to-date return of -35.44%, significantly underperforming the Sensex, which has returned 8.78% in the same period. Given the substantial negative ratios and the company's poor performance relative to its peers, Family Care is clearly overvalued in the current market context.