Is Sanofi Consumer overvalued or undervalued?

As of 19 April 2025, the valuation grade for Sanofi Consumer has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a price-to-earnings (PE) ratio of 57.64, a price-to-book value of 42.77, and an EV to EBITDA ratio of 41.78. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Sanofi Consumer's PE ratio is notably higher than Sun Pharmaceutical Industries Ltd. at 35.25 and Cipla Ltd. at 22.99, both of which are considered attractive. Furthermore, the PEG ratio for Sanofi is 0.00, indicating no growth expectations, which contrasts sharply with the more reasonable valuations of its competitors. Recent stock performance shows that Sanofi has underperformed the Sensex over the past week, with a return of -6.91% compared to the Sensex's 1.35%. This reinforces the notion that the stock may be overvalued in the current market context.