Is Gufic BioScience overvalued or undervalued?

As of 28 October 2025, Gufic BioScience's valuation grade has moved from expensive to very expensive. The company is currently overvalued based on its high valuation metrics. The PE ratio stands at 55.45, significantly above the industry average, while the EV to EBITDA ratio is 27.92, indicating a premium valuation compared to peers. Additionally, the Price to Book Value ratio is at 5.64, further supporting the overvaluation assessment.
In comparison to its peers, Gufic BioScience's valuation is notably higher than Sun Pharma, which has a PE ratio of 35.35 and an EV to EBITDA of 23.98, and Cipla, which is considered attractive with a PE of 23.52 and an EV to EBITDA of 16.57. Despite a strong historical performance over the long term, recent stock returns have lagged behind the Sensex, with a year-to-date decline of 25.38% compared to the Sensex's gain of 8.30%. This reinforces the conclusion that Gufic BioScience is overvalued in the current market environment.