Is Vaidya Sane overvalued or undervalued?

As of 10 October 2025, the valuation grade for Vaidya Sane has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 49.32, an EV to EBITDA of 26.37, and a PEG ratio of 0.11, which suggests that while the company has high earnings growth potential, its current price does not reflect a favorable valuation compared to its earnings.
In comparison to its peers, Vaidya Sane's PE ratio is significantly higher than Sun Pharma's 34.96 and Cipla's 23.39, indicating that investors are paying a premium for Vaidya Sane's shares relative to its earnings. Additionally, while Vaidya Sane has shown impressive returns year-to-date at 94.88%, this is contrasted by its recent performance, which has lagged behind the Sensex over the past week and month. Overall, the combination of high valuation ratios and peer comparisons supports the conclusion that Vaidya Sane is overvalued in the current market.