Is Fervent Synerg. overvalued or undervalued?

As of 25 June 2025, the valuation grade for Fervent Synerg. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its key financial ratios, including a PE ratio of 34.88, an EV to EBITDA ratio of 34.50, and a Price to Book Value of 2.91. These figures suggest that the company's stock price is high relative to its earnings and book value.
In comparison to its peers, Fervent Synerg. stands out with a PE ratio that is slightly lower than Sun Pharma's 35 but significantly higher than Cipla's attractive PE of 23.13. Additionally, the PEG ratio of 0.31 indicates potential growth, but the negative ROCE of -36.63% raises concerns about operational efficiency. While Fervent Synerg. has outperformed the Sensex over the past year with a return of 24.77% compared to the Sensex's 6.02%, the overall valuation suggests caution for potential investors.