Is Lupin overvalued or undervalued?

As of 7 November 2025, Lupin's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 20.82, an EV to EBITDA of 13.53, and a PEG ratio of 0.32, which suggests that the stock is reasonably priced relative to its growth potential.
In comparison to its peers, Lupin's valuation stands out against Sun Pharma, which is considered expensive with a PE ratio of 35.17, and Cipla, which is also attractive with a PE of 22.33. While Lupin has experienced a decline in stock performance year-to-date at -16.17%, it has significantly outperformed the Sensex over a three-year period with a return of 177.66%. This indicates that despite recent challenges, Lupin remains a solid investment relative to its peers.