Is Fortis Health. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Fortis Health has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios highlight this valuation: the PE ratio stands at 76.24, the Price to Book Value is 7.18, and the EV to EBITDA ratio is 41.53.
When compared to peers, Fortis Health's PE ratio is notably higher than Apollo Hospitals, which has a PE of 73.22, and Narayana Hrudaya, at 50.88. This suggests that investors are paying a premium for Fortis Health relative to its earnings potential. Additionally, while Fortis Health has outperformed the Sensex in various time frames, including a 74.81% return over the past year compared to the Sensex's 2.54%, the current valuation metrics indicate that the stock may not be justified at its present price of 847.50.