Is Vivo Bio Tech overvalued or undervalued?

As of 26 May 2025, the valuation grade for Vivo Bio Tech has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 9.33, an EV to EBITDA ratio of 5.88, and a PEG ratio of 0.07, all of which suggest that the stock is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, Vivo Bio Tech stands out with a much lower PE ratio than Sun Pharma (35.25) and Divi's Lab (79.33), both of which are categorized as expensive. Additionally, its EV to EBITDA ratio is significantly better than those of its peers, reinforcing the undervaluation narrative. While Vivo Bio Tech has underperformed the Sensex over the past year with a return of -5.27% compared to the Sensex's 7.60%, its strong valuation metrics suggest that it may present a compelling investment opportunity moving forward.