Is Laurus Labs overvalued or undervalued?

As of 5 September 2025, Laurus Labs has moved from expensive to very expensive in its valuation grade. The company is currently overvalued, with a PE ratio of 93.73, a Price to Book Value of 10.66, and an EV to EBITDA ratio of 39.73. In comparison to its peers, Sun Pharma has a PE ratio of 33.33 and Divi's Lab shows a PE of 69.2, both indicating that Laurus Labs is significantly more expensive relative to these companies.
The company's financial metrics reveal a PEG ratio of 0.39 and a ROCE of 8.82%, which suggest that while growth may be anticipated, the current valuation does not justify the price. Notably, Laurus Labs has outperformed the Sensex with a year-to-date return of 46.06% compared to the Sensex's 3.29%, but this performance does not mitigate the concerns regarding its high valuation.