Is Laurus Labs overvalued or undervalued?

As of 26 September 2025, Laurus Labs' valuation grade has moved from very expensive to expensive, indicating a shift in perception regarding its market valuation. The company is currently considered overvalued based on its high PE ratio of 88.34, a Price to Book Value of 10.05, and an EV to EBITDA of 37.57. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Laurus Labs stands out with a significantly higher PE ratio than Sun Pharma's 33.18 and Divi's Lab's 65.51, both of which are also categorized as expensive. The PEG ratio of 0.36 indicates potential growth relative to its price, but this is overshadowed by the high valuation metrics. Despite a strong year-to-date return of 38.24% compared to the Sensex's 2.93%, the overall valuation suggests that Laurus Labs may not be a prudent investment at its current price of 832.70.