Is Narayana Hrudaya overvalued or undervalued?

As of 30 June 2025, the valuation grade for Narayana Hrudaya has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 55.72, an EV to EBITDA of 35.36, and a PEG ratio of 46.64. In comparison, Apollo Hospitals, which is rated attractive, has a PE ratio of 71.96 and an EV to EBITDA of 36.11, while Fortis Health, also expensive, has a PE ratio of 71.25 and an EV to EBITDA of 38.89.
Despite the recent stock performance, which has outpaced the Sensex with a year-to-date return of 71.05% compared to the Sensex's 7.00%, the high valuation ratios indicate that Narayana Hrudaya is trading at a premium relative to its peers. Therefore, investors should approach this stock with caution given its current overvaluation status.