Is RPG LifeScience. overvalued or undervalued?

As of 31 October 2025, RPG LifeScience's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 35.76, an EV to EBITDA ratio of 24.94, and a PEG ratio of 0.84. These figures suggest that while the company has a relatively high PE ratio, its growth prospects are reasonably priced compared to its earnings growth.
In comparison to its peers, RPG LifeScience's valuation metrics are competitive; for instance, Sun Pharma has a PE ratio of 35.35 and an EV to EBITDA of 23.98, while Cipla stands out with a more attractive PE ratio of 22.29 and an EV to EBITDA of 5.55. Notably, RPG LifeScience's return on capital employed (ROCE) is impressive at 46.94%, which further supports its fair valuation status. Additionally, over the past three years, RPG LifeScience has significantly outperformed the Sensex with a return of 188.28%, reinforcing its strong market position.