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 based on its high valuation ratios, including a PE Ratio of 93.73, an EV to EBITDA of 39.73, and a Price to Book Value of 10.66. These figures significantly exceed those of its peers, such as Sun Pharma with a PE Ratio of 33.33 and Divi's Lab at 69.2, indicating a stark contrast in valuation metrics.
The peer comparison further highlights Laurus Labs' overvaluation, as its PEG Ratio stands at a low 0.39 compared to the industry average, suggesting that the stock price does not reflect its growth potential. Additionally, while Laurus Labs has shown strong stock performance with a year-to-date return of 46.06% compared to the Sensex's 3.29%, this does not justify its current valuation levels. Overall, Laurus Labs appears to be overvalued in the current market environment.