Is Medplus Health overvalued or undervalued?

As of 11 July 2025, the valuation grade for Medplus Health has moved from very attractive to attractive, indicating a shift in perception regarding its market position. The company is currently considered overvalued based on its high PE ratio of 68.91 and EV to EBITDA of 22.81, which are significantly higher than those of its peers. For instance, Avenue Supermarts has a PE ratio of 97.75, and Trent has an even higher PE of 123.02, both categorized as very expensive, suggesting that Medplus Health's valuation may not be justified in comparison.
In terms of performance, Medplus Health's ROCE stands at 9.52% and ROE at 8.64%, which are relatively modest given the high valuation multiples. The PEG ratio of 0.53 indicates potential growth, yet the current market price of 865.10 is still elevated compared to its peers. While Medplus Health has outperformed the Sensex over the past year with a return of 29.65% compared to the Sensex's 3.26%, the overall valuation metrics suggest that it may be overvalued in the current market environment.