Is Trident Lifeline overvalued or undervalued?

As of 26 September 2025, Trident Lifeline's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 21.47, an EV to EBITDA of 16.28, and a Price to Book Value of 6.88. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Trident Lifeline's valuation stands out as particularly high. For instance, Sun Pharma has a PE ratio of 33.18 and an EV to EBITDA of 22.43, while Cipla is more attractively valued with a PE of 22.45 and an EV to EBITDA of 15.77. Notably, Trident Lifeline's PEG ratio of 0.26 indicates that its growth prospects are not being adequately reflected in its current price, further supporting the conclusion of overvaluation. Despite a recent positive return of 5.89% year-to-date compared to the Sensex's 2.93%, the overall valuation metrics suggest that investors should approach this stock with caution.