Is Global Health overvalued or undervalued?

As of 28 January 2025, the valuation grade for Global Health has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE Ratio of 63.07, an EV to EBITDA of 36.89, and a PEG Ratio of 7.37, all of which suggest that the stock is trading at a premium compared to its earnings and growth potential.
In comparison to its peers, Max Healthcare Institute Ltd. has a higher PE Ratio of 100.29, while Apollo Hospitals Enterprise Ltd. shows a PE Ratio of 69.03, both indicating that Global Health's valuation is relatively high within the industry. Notably, Global Health's ROCE stands at 22.92%, which is strong, but the high valuation ratios overshadow this performance. Additionally, while Global Health's year-to-date return of 11.57% outperformed the Sensex's 5.56%, the overall trend suggests that the stock may not sustain its current valuation levels in the long run.