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 in its market perception. The company appears overvalued based on its current metrics, with a PE ratio of 49.17, a Price to Book Value of 6.96, and an EV to EBITDA of 26.51. These figures suggest that investors are paying a premium for the stock compared to its earnings and book value.
In comparison to its peers, Glenmark Pharma's valuation stands out as particularly high. For instance, Sun Pharma has a PE ratio of 35.09 and an EV to EBITDA of 24.8, while Cipla is valued more attractively with a PE of 22.77 and an EV to EBITDA of 15.77. Despite Glenmark's strong recent stock performance, including a 56.41% return over the past year compared to the Sensex's 3.26%, the high valuation ratios indicate that the stock may not be a prudent investment at this time.