Is QMS Medical overvalued or undervalued?

As of 14 August 2025, QMS Medical's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, with a price-to-earnings (PE) ratio of 12.50, an EV to EBITDA ratio of 8.20, and a PEG ratio of 0.63, suggesting that it is trading at a discount relative to its earnings growth potential.
In comparison to its peers, QMS Medical stands out as more reasonably priced. For example, Poly Medicure has a PE ratio of 53.86, while Blue Jet Health is at 38.33, both of which are significantly higher than QMS Medical's valuation. Additionally, the company's return on capital employed (ROCE) is 13.06%, which further supports its attractiveness in the healthcare services industry. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 33.85% compared to the Sensex's gain of 4.17%, the underlying valuation metrics suggest that QMS Medical presents a compelling investment opportunity.