Is Vaidya Sane overvalued or undervalued?

As of 7 October 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 overvalued, with a PE ratio of 52.37, a Price to Book Value of 7.25, and an EV to EBITDA of 28.10. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Vaidya Sane's valuation stands out as particularly high. For instance, Sun Pharma has a PE ratio of 34.6 and an EV to EBITDA of 23.44, while Cipla, which is rated attractive, has a PE ratio of 22.68 and an EV to EBITDA of 15.95. This stark contrast highlights the overvaluation of Vaidya Sane relative to its industry peers. Despite a strong year-to-date return of 106.93%, the company's current valuation metrics suggest that it may not sustain such performance in the long term.