Is Wockhardt overvalued or undervalued?

As of 21 August 2025, Wockhardt's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on key financial ratios such as a PE ratio of -916.39, an EV to EBIT of 162.80, and an EV to EBITDA of 67.47. These figures suggest significant concerns regarding profitability and valuation relative to its earnings potential.
In comparison to its peers, Wockhardt's valuation metrics are starkly unfavorable. For instance, Sun Pharma has a PE ratio of 34.3 and an EV to EBITDA of 23.22, while Cipla stands at a more attractive PE of 23.87 and an EV to EBITDA of 16.84. The stark contrast in these ratios highlights Wockhardt's overvaluation in the current market context. Despite a strong historical performance with a 3-year return of 457.12%, recent trends show a decline, with a 1-month return of -15.79%, further reinforcing the notion that Wockhardt is currently overvalued.