Is Star Imaging overvalued or undervalued?

As of 19 November 2025, the valuation grade for Star Imaging has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued based on its financial ratios, which include a PE ratio of 14.83, an EV to EBITDA of 9.24, and a ROE of 33.81%. Compared to its peers, Star Imaging's valuation is starkly higher; for instance, Max Healthcare has a PE ratio of 80.06 and Apollo Hospitals stands at 64.09, both of which suggest that Star Imaging is priced at a premium relative to its industry.
In the context of its recent stock performance, Star Imaging has underperformed the Sensex over the past week with a return of -4.31% compared to the Sensex's 0.85%. This trend reinforces the notion that the company's current valuation may not be justified by its financial performance and market conditions. Overall, Star Imaging's current valuation appears unsustainable, leading to the conclusion that it is overvalued.