Is Laxmi Dental overvalued or undervalued?

As of 16 September 2025, Laxmi Dental's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued, with a PE Ratio of 74.82, an EV to EBITDA of 45.62, and an EV to Sales ratio of 7.99. These ratios are considerably higher than its peers, such as Poly Medicure with a PE of 56.1 and Blue Jet Health with a PE of 34.66, both of which also fall under the "very expensive" category.
In comparison to its industry peers, Laxmi Dental's metrics suggest it is not only overvalued but also lacks competitive advantage in terms of valuation ratios. The company's recent stock performance has outpaced the Sensex, with a 1-week return of 12.31% compared to the Sensex's 1.58%, which may reflect short-term investor enthusiasm. However, the overall valuation suggests caution for long-term investors.