Is Strides Pharma overvalued or undervalued?

As of 29 August 2025, the valuation grade for Strides Pharma has moved from very attractive to attractive. The company is currently considered undervalued. Key ratios include a PE ratio of 21.16, an EV to EBITDA of 11.59, and a ROE of 26.67%.
In comparison to peers, Strides Pharma's PE ratio is lower than Sun Pharma's 33.34 and Divi's Lab's 70.28, indicating a more favorable valuation. Additionally, while Strides Pharma has a PEG ratio of 0.00, suggesting growth potential without a current price premium, peers like Cipla and Dr. Reddy's Labs are also rated attractive with PE ratios of 23.82 and 18.56, respectively. Notably, Strides Pharma has outperformed the Sensex with a year-to-date return of 31.27% compared to the Sensex's 2.14%, reinforcing its undervalued status.