Is Novartis India overvalued or undervalued?

As of 16 May 2025, the valuation grade for Novartis India has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE Ratio of 24.77, an EV to EBITDA of 20.87, and a PEG Ratio of 1.36. Compared to its peers, Sun Pharma has a higher PE Ratio of 35.25, while Cipla presents a more attractive valuation with a PE Ratio of 22.99.
In the context of the broader market, Novartis India's recent stock performance has been mixed, with a year-to-date return of 9.50%, outpacing the Sensex's 5.63%, but a one-year return of -2.99% suggests challenges ahead. Overall, the combination of high valuation ratios and peer comparisons leads to the conclusion that Novartis India is overvalued at its current price of 1007.15.