Is Medicamen Biotec overvalued or undervalued?

As of 23 September 2025, Medicamen Biotec's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued, with a PE ratio of 47.92, an EV to EBITDA of 32.23, and a PEG ratio of 2.37. These ratios suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Medicamen Biotec's PE ratio is significantly higher than Sun Pharma's 34.11 and Cipla's 22.93, both of which are considered attractive. The high valuation metrics, coupled with a low return on equity of 4.08% and a return on capital employed of only 2.79%, further reinforce the notion of overvaluation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 34.23% compared to a 5.07% increase in the index, highlighting potential concerns about its growth prospects.