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 based on its high valuation ratios. The PE ratio stands at 49.32, while the EV to EBITDA ratio is 26.37, and the PEG ratio is notably low at 0.11, indicating that the stock may not be justified at its current price level.
When compared to peers, Vaidya Sane's valuation appears excessive, particularly against Sun Pharma's PE of 34.96 and EV to EBITDA of 23.7, and Cipla's more attractive ratios of 23.39 and 16.48, respectively. Additionally, despite a strong year-to-date stock return of 94.88%, the recent performance has lagged behind the Sensex, which returned 6.94% in the same period. This combination of high valuation ratios and peer comparisons suggests that Vaidya Sane is overvalued in the current market context.