Is Laurus Labs overvalued or undervalued?

As of 21 August 2025, Laurus Labs has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 93.49, a Price to Book Value of 10.64, and an EV to EBITDA ratio of 39.64. These figures are significantly higher than its peers, such as Sun Pharma with a PE ratio of 34.3 and Divi's Lab at 69.33, both of which are categorized as expensive or very expensive.
In comparison to the broader market, Laurus Labs has demonstrated strong stock performance, with a year-to-date return of 47.68% compared to the Sensex's 4.94%. However, despite this impressive performance, the valuation metrics suggest that the stock is not justified at its current price of 889.55, making it a candidate for overvaluation in the current market landscape.