Is Trident Lifeline overvalued or undervalued?

As of 6 June 2024, Trident Lifeline's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued based on its financial metrics, with a PE ratio of 32.36, an EV to EBITDA ratio of 26.33, and a PEG ratio of 0.38. These ratios suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Trident Lifeline's valuation stands out as particularly high; for instance, Sun Pharmaceutical Industries has a PE ratio of 35.25, while Cipla Ltd. is more attractively valued at a PE ratio of 22.99. The substantial difference in these ratios reinforces the conclusion that Trident Lifeline is overvalued. Additionally, while the company has performed well over the past year with a stock return of 79.38% compared to the Sensex's 7.55%, this performance does not justify its current valuation levels.