Is Metropolis Healt overvalued or undervalued?

As of 26 August 2025, the valuation grade for Metropolis Health has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 73.58, while the EV to EBITDA ratio is 35.92, both significantly higher than many peers in the healthcare sector. Notably, Apollo Hospitals, which is rated attractive, has a PE ratio of 70.89 and an EV to EBITDA of 36.46, suggesting that Metropolis Health's valuation is not justified when compared to its competitors.
In terms of financial performance, Metropolis Health has a ROCE of 13.72% and a ROE of 10.89%, which are respectable but do not compensate for its high valuation ratios. The company is currently priced at 2160.00, with a 52-week high of 2306.85 and a low of 1383.70. Despite recent stock performance showing a 10.13% return over the past month compared to a -0.83% return for the Sensex, the overall valuation indicates that Metropolis Health is overvalued in the current market context.