Is Wockhardt overvalued or undervalued?

As of 7 August 2025, Wockhardt's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a staggering PE ratio of -531.07, an EV to EBIT of 149.82, and an EV to EBITDA of 67.09. These ratios suggest that Wockhardt is trading at levels that are not justified by its earnings or operational performance.
In comparison to its peers, Wockhardt's valuation metrics stand out unfavorably; for instance, Sun Pharma has a PE ratio of 33.44 and an EV to EBITDA of 22.61, while Divi's Lab shows an EV to EBITDA of 51.76. This stark contrast highlights Wockhardt's overvaluation relative to its industry peers. Additionally, while Wockhardt has shown a remarkable 72.56% return over the past year, the broader Sensex has only returned 1.45%, which may not be sustainable given its current valuation metrics.