Is Nephro Care overvalued or undervalued?

As of 8 July 2025, Nephro Care's valuation grade has moved from expensive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 47.87, an EV to EBITDA ratio of 29.47, and a ROCE of 24.83%. In comparison to its peers, Max Healthcare is considered very expensive with a PE of 111.7, while Apollo Hospitals is rated attractive with a PE of 75.24.
Despite the fair valuation, Nephro Care has experienced significant stock declines, with a year-to-date return of -42.55%, contrasting sharply with the Sensex's positive return of 7.94% over the same period. This underperformance may suggest that the market has not fully recognized the company's fair valuation amidst broader market trends.