Is Strides Pharma overvalued or undervalued?

As of 3 November 2025, the valuation grade for Strides Pharma has moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, particularly when examining its key financial ratios. Strides Pharma has a PE ratio of 20.76, a price to book value of 0.33, and an EV to EBITDA of 23.05, which suggest that it is trading at a significant discount compared to its peers.
In comparison to notable competitors, Sun Pharma has a PE ratio of 35.62 and an EV to EBITDA of 24.18, while Cipla shows a PE of 22.44 and an EV to EBITDA of 5.66. This highlights that Strides Pharma is positioned favorably within the industry, especially with its PEG ratio at 0.00, suggesting strong growth potential relative to its price. Additionally, Strides Pharma has outperformed the Sensex in various timeframes, including a year-to-date return of 49.33% compared to the Sensex's 7.47%, reinforcing the notion of its undervaluation.