Is Vaidya Sane overvalued or undervalued?

As of 10 October 2025, the valuation grade for Vaidya Sane has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. 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 despite high earnings multiples, the growth prospects may not justify such valuations.
In comparison to its peers, Vaidya Sane's PE ratio significantly exceeds that of Sun Pharma, which stands at 34.96, and Cipla, which is at 23.39. This indicates that Vaidya Sane is priced at a premium relative to its industry peers, further supporting the overvaluation assessment. Additionally, while Vaidya Sane has shown impressive year-to-date returns of 94.88% compared to the Sensex's 6.94%, this performance does not mitigate the concerns regarding its current high valuation metrics.