Is Wockhardt overvalued or undervalued?

As of 24 September 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 -932.96, an EV to EBITDA of 68.62, and a Price to Book Value of 5.57. These ratios highlight a concerning financial position, particularly the negative PE ratio, which suggests substantial losses relative to its market price.
In comparison to its peers, Wockhardt's valuation stands out unfavorably. For instance, Sun Pharma has a PE ratio of 34.03 and an EV to EBITDA of 23.03, while Divi's Lab shows an EV to EBITDA of 50.39 with a PE of 68.78, both of which are significantly lower than Wockhardt's metrics. This stark contrast reinforces the conclusion that Wockhardt is overvalued in the current market context. Despite a strong performance over the past year with a return of 48.84% compared to the Sensex's -3.77%, the underlying financial ratios suggest that the stock's price may not be sustainable at these levels.