Is Metropolis Healt overvalued or undervalued?

As of 10 July 2025, the valuation grade for Metropolis Health has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 70.56, an EV to EBITDA of 34.04, and a PEG ratio of 5.80. These figures suggest that the stock price is not justified by its earnings growth potential compared to its peers.
In comparison to its industry peers, Metropolis Health's PE ratio is significantly higher than that of Apollo Hospitals at 73.18 and Fortis Health at 69.58, both of which are also categorized as expensive. Additionally, while Metropolis Health has a ROCE of 13.72% and an ROE of 10.89%, these returns do not sufficiently compensate for the elevated valuation metrics. Despite a recent strong performance against the Sensex over the past week and month, the overall trend shows that the stock has underperformed year-to-date and over the past year, reinforcing the conclusion that Metropolis Health is overvalued.