Is Vaidya Sane overvalued or undervalued?

As of 6 October 2025, the valuation grade for Vaidya Sane has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 50.05, an EV to EBITDA of 26.78, and a Price to Book Value of 6.93. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Vaidya Sane's PE ratio is notably higher than Sun Pharma's 34.56 and Cipla's 22.72, which indicates that investors are paying much more for each unit of earnings. Additionally, while Vaidya Sane has a PEG ratio of 0.11, which typically suggests undervaluation, the overall high multiples indicate that the market may have priced in excessive growth expectations. Despite a strong year-to-date return of 97.76% compared to the Sensex's 6.06%, the current valuation metrics suggest that Vaidya Sane is overvalued in the context of its industry peers.