Is Laurus Labs overvalued or undervalued?

As of 24 October 2025, Laurus Labs' valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 73.03, the EV to EBITDA ratio is 44.32, and the PEG ratio is notably low at 0.17, suggesting that the stock is priced high relative to its earnings growth potential.
When compared to peers, Laurus Labs' valuation appears excessive. For instance, Sun Pharma has a PE ratio of 35.55 and an EV to EBITDA of 24.12, while Cipla, which is rated attractive, has a PE of 23.72 and an EV to EBITDA of 16.73. These comparisons highlight that Laurus Labs is trading at a premium relative to its industry counterparts. Despite a strong year-to-date return of 53.61% compared to the Sensex's 7.77%, the overall financial ratios suggest that Laurus Labs is overvalued in the current market environment.