Is Metropolis Healt overvalued or undervalued?

As of 9 July 2025, the valuation grade for Metropolis Health has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued, with a PE ratio of 73.55, an EV to EBITDA ratio of 35.47, and a PEG ratio of 6.05. These ratios suggest that investors are paying a premium for the company's earnings and growth potential compared to its peers.
In comparison to its industry peers, Metropolis Health's valuation appears high. For instance, Max Healthcare has a PE ratio of 107.03 and an EV to EBITDA of 66.84, while Apollo Hospitals shows a PE of 74.13 and an EV to EBITDA of 37.15. This places Metropolis Health in a challenging position, as it is not only more expensive than some peers but also lacks a competitive edge in terms of returns, with a ROCE of 13.72% and ROE of 10.89%. Despite a recent strong stock performance compared to the Sensex over the past week and month, the overall valuation metrics suggest that Metropolis Health is not justified at its current price level.