Is Medicamen Biotec overvalued or undervalued?

As of 23 October 2025, Medicamen Biotec's valuation grade has moved from expensive to very expensive. The company appears to be overvalued based on its current metrics, with a PE ratio of 52.55, an EV to EBIT of 66.79, and a Price to Book Value of 2.34. These figures indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Medicamen Biotec's valuation stands out unfavorably. For instance, Sun Pharma has a PE ratio of 35.47 and an EV to EBITDA of 24.07, while Cipla is valued attractively with a PE of 24.64 and an EV to EBITDA of 17.42. The stark contrast in these ratios suggests that Medicamen Biotec is priced excessively high relative to its industry counterparts. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -27.87% compared to the Sensex's 8.21%.