Is KMS Medisurgi overvalued or undervalued?

As of 27 June 2025, the valuation grade for KMS Medisurgi has moved from risky to very expensive. The company is currently considered overvalued, with a PE ratio of 41.91, an EV to EBIT ratio of 42.03, and a Price to Book Value of 5.47. These ratios indicate a significant premium compared to its peers, such as Poly Medicure, which has a PE ratio of 64.67, and Vimta Labs, with a PE ratio of 31.91, highlighting that KMS Medisurgi is trading at a higher valuation despite its lower return metrics, including a ROCE of 8.61% and an ROE of 5.74%.
In comparison to the Sensex, KMS Medisurgi's stock has underperformed over the past year, returning only 1.6% compared to the Sensex's 6.08%. This performance, coupled with its high valuation ratios, reinforces the conclusion that KMS Medisurgi is overvalued in the current market environment.