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 expectations are high, the current price may not be justified by its earnings potential.
In comparison to peers, Sakar Healthcare's PE ratio is higher than that of Sun Pharma at 34.58 and significantly above Cipla, which has a PE of 23.55, indicating that Sakar may be overpricing its earnings relative to these competitors. Additionally, despite recent stock performance showing a 15.94% year-to-date return compared to the Sensex's 7.11%, the overall valuation metrics suggest that investors should exercise caution as the stock appears to be trading at a premium compared to its industry peers.