Is Gland Pharma overvalued or undervalued?

As of 7 November 2025, Gland Pharma's valuation grade has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios reveal a PE Ratio of 38.88, an EV to EBITDA of 4.16, and a Price to Book Value of 0.32, suggesting that while the company has a low book value relative to its market price, its earnings multiples are high compared to industry norms.
In comparison to its peers, Gland Pharma's PE Ratio is higher than Sun Pharma's 35.17 and significantly above Cipla's attractive PE of 22.33. The PEG Ratio of 2.72 also indicates that the stock may not be justified by its growth prospects, especially when compared to Dr Reddy's Labs, which has a more favorable PEG of 2.15. Additionally, Gland Pharma's recent stock performance has lagged behind the Sensex, with a 1-month return of -3.85% compared to the Sensex's 1.57%, reinforcing the view that the stock is currently overvalued.