Is Laurus Labs overvalued or undervalued?

As of 5 September 2025, the valuation grade for Laurus Labs has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios highlight this assessment, with a PE Ratio of 93.73, an EV to EBITDA of 39.73, and a Price to Book Value of 10.66, all significantly higher than industry norms.
In comparison to its peers, Laurus Labs stands out with its high valuation metrics; for instance, Sun Pharma has a PE Ratio of 33.33 and Divi's Lab at 69.2, both of which are considerably lower than Laurus Labs. The PEG Ratio of 0.39 suggests that while growth expectations may be high, the current price does not reflect sustainable value. Recent performance shows Laurus Labs has outpaced the Sensex with a year-to-date return of 46.06%, reinforcing the notion of a potential overvaluation.