Is Lupin overvalued or undervalued?

As of 1 October 2025, Lupin's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE Ratio of 24.42, an EV to EBITDA of 15.95, and a PEG Ratio of 0.39, which suggests strong growth potential relative to its price.
In comparison to its peers, Lupin's valuation stands out favorably; for instance, Sun Pharma has a PE Ratio of 34.22, while Divi's Lab is at 65.66, both of which are considered expensive. Additionally, Cipla, which is rated attractive, has a lower PE Ratio of 22.63. Despite a challenging year-to-date return of -15.86%, Lupin's strong fundamentals and attractive valuation metrics position it well against the backdrop of the pharmaceutical industry.