Is Vaidya Sane overvalued or undervalued?

As of 24 September 2025, the valuation grade for Vaidya Sane has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 53.61, an EV to EBITDA of 28.80, and a PEG ratio of 0.12, which suggests that despite high earnings multiples, growth expectations may not justify the price.
In comparison to peers, Vaidya Sane's PE ratio is notably higher than Sun Pharma's 34.03 and Cipla's 22.99, both of which are categorized as expensive or attractive, respectively. Additionally, Vaidya Sane's EV to EBITDA ratio of 28.80 is also elevated compared to Sun Pharma's 23.03. The company's strong YTD return of 111.84% compared to the Sensex's 5.97% reinforces the notion of overvaluation, as such performance may not be sustainable given its current high valuation metrics.