Is Gufic BioScience overvalued or undervalued?

As of 27 October 2025, Gufic BioScience's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The price-to-earnings (PE) ratio stands at 54.99, significantly higher than its peers, with Sun Pharma at 35.43 and Cipla at 23.74. Additionally, the EV to EBITDA ratio for Gufic is 27.70, again above Sun Pharma's 24.04, which further supports the notion of overvaluation.
With a return on equity (ROE) of 10.17% and a return on capital employed (ROCE) of 12.89%, Gufic's performance does not justify its high valuation ratios. The company's PEG ratio is notably at 0.00, suggesting that there are no expected earnings growth to support its current price. Given these factors, Gufic BioScience is assessed as overvalued in comparison to its industry peers, despite its historical stock performance showing significant gains over the long term.