Is Sakar Healthcare overvalued or undervalued?

As of 19 September 2025, Sakar Healthcare's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 38.22, an EV to EBITDA of 16.08, and a PEG Ratio of 0.53, which suggests that while growth may be expected, the current price does not justify the earnings potential compared to its peers.
In comparison to its industry peers, Sakar Healthcare's PE Ratio is higher than Sun Pharma's 34.58 and significantly above Cipla's more attractive 23.55. Additionally, Sakar's EV to EBITDA ratio of 16.08 is lower than that of Divi's Lab, which stands at 52.26, but still reflects a premium valuation in the context of the sector. Notably, Sakar Healthcare has outperformed the Sensex over various time frames, including a year-to-date return of 15.94% compared to the Sensex's 7.11%, reinforcing the notion that while the stock has shown strong performance, its current valuation remains elevated.