Is Laurus Labs overvalued or undervalued?

As of 24 October 2025, Laurus Labs has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 73.03, an EV to EBITDA ratio of 44.32, and a PEG ratio of 0.17, which highlights its high valuation relative to its growth prospects.
In comparison to its peers, Laurus Labs' PE ratio is significantly higher than Sun Pharma's 35.55 and Cipla's 23.72, indicating that investors are paying a premium for Laurus Labs relative to these companies. Additionally, while Laurus Labs has shown strong stock performance with a year-to-date return of 53.61% compared to the Sensex's 7.77%, this does not mitigate the concerns surrounding its high valuation metrics.