Is Gland Pharma overvalued or undervalued?

As of 28 October 2025, Gland Pharma's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 40.71, while the EV to EBITDA ratio is 21.22, and the PEG ratio is notably high at 6.11, suggesting that the stock price may not be justified by its earnings growth potential.
In comparison to its peers, Gland Pharma's valuation is higher than Sun Pharma, which has a PE ratio of 35.35 and an EV to EBITDA of 23.98, but lower than Divi's Lab, which is categorized as very expensive with a PE ratio of 74.05. Other peers like Cipla and Dr. Reddy's Labs are considered attractive, with PE ratios of 23.52 and 18.66, respectively. Additionally, Gland Pharma's recent stock performance has lagged behind the Sensex, particularly over the past month, where it reported a decline of 2.93% compared to the Sensex's gain of 5.22%. This further reinforces the view that Gland Pharma may be overvalued in the current market environment.