Is Themis Medicare overvalued or undervalued?

As of 23 June 2025, Themis Medicare's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company appears to be overvalued based on several key financial ratios, including a PE ratio of 40.93, an EV to EBIT of 33.00, and an EV to EBITDA of 26.32. In comparison, peers such as Sun Pharma have a PE ratio of 34.87 and an EV to EBITDA of 24.63, while Cipla, considered attractive, boasts a much lower PE ratio of 22.95 and an EV to EBITDA of 15.9.
Given these metrics, Themis Medicare is currently overvalued in the context of its industry. The company's recent stock performance has also been underwhelming, with a year-to-date return of -49.59%, significantly lagging behind the Sensex's positive return of 4.81% in the same period. This further reinforces the notion that the stock may not justify its current valuation.