Is Sakar Healthcare overvalued or undervalued?

As of 19 September 2025, the valuation grade for Sakar Healthcare has moved from very expensive to expensive. The company is currently considered overvalued based on its high PE ratio of 38.22, an EV to EBIT of 27.44, and an EV to EBITDA of 16.08. In comparison to its peers, Sun Pharma has a PE ratio of 34.58 and an EV to EBITDA of 23.43, while Cipla, which is rated attractive, has a significantly lower PE ratio of 23.55 and an EV to EBITDA of 16.59.
The PEG ratio for Sakar Healthcare stands at 0.53, indicating potential growth relative to its price, but this is overshadowed by its high valuation metrics. The company's return performance has outpaced the Sensex in various time frames, including a year-to-date return of 15.94% compared to the Sensex's 7.11%, which may suggest some investor optimism. However, given the overall high valuation ratios and peer comparisons, Sakar Healthcare appears to be overvalued in the current market.