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 of 44.32, and a PEG ratio of 0.17, which indicates a significant premium compared to its peers.
In comparison to its peers, Sun Pharma has a PE ratio of 35.55 and an EV to EBITDA of 24.12, while Cipla shows a more attractive valuation with a PE of 23.72 and an EV to EBITDA of 16.73. The high valuation of Laurus Labs is not justified when looking at these peer comparisons, suggesting that the stock is trading at a premium without corresponding financial performance. Notably, Laurus Labs has outperformed the Sensex significantly over the past year, with a return of 105.45% compared to the Sensex's 5.18%, but this does not mitigate its current overvaluation status.