Is Glenmark Pharma overvalued or undervalued?

As of 11 July 2025, Glenmark Pharma's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 49.17, a Price to Book Value of 6.96, and an EV to EBITDA ratio of 26.51. These ratios suggest that the stock may be priced higher than its fundamental value.
In comparison to its peers, Glenmark Pharma's PE ratio is significantly higher than Sun Pharma's 35.09 and Cipla's more attractive 22.77, reinforcing the notion of overvaluation. Additionally, while Glenmark's PEG ratio stands at a low 0.20, indicating potential growth, the overall valuation metrics do not support a fair valuation. Notably, Glenmark has outperformed the Sensex in various time frames, including a 56.41% return over the past year, which may have contributed to its elevated stock price.