Is Syncom Formul. overvalued or undervalued?

As of 21 August 2025, the valuation grade for Syncom Formulations has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation relative to its fundamentals. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 28.77, an EV to EBITDA of 25.95, and a PEG Ratio of 0.28, which suggests that despite the high earnings multiple, the growth prospects may not justify the current valuation.
In comparison to its peers, Syncom's PE Ratio is lower than Sun Pharma's 34.3 but significantly higher than Cipla's 23.87, indicating that while it is less expensive than some competitors, it still remains on the higher end of the spectrum. The EV to EBITDA ratio also reflects this trend, as Syncom's 25.95 is above Cipla's 16.84 but below the much higher ratios of companies like Divi's Lab at 50.8. The recent stock performance shows that Syncom has outperformed the Sensex over the past week, but its year-to-date return of -11.95% suggests underlying challenges that may not be fully reflected in its current valuation.