Is Wockhardt overvalued or undervalued?

As of 4 November 2025, Wockhardt's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 299.73, an EV to EBIT of 97.00, and an EV to EBITDA of 49.38. These ratios starkly contrast with its peers, such as Sun Pharma, which has a PE ratio of 35.41 and an EV to EBITDA of 24.02, and Cipla, which boasts a more attractive PE ratio of 22.35 and an EV to EBITDA of 5.59.
The high valuation metrics suggest that Wockhardt is trading at a premium compared to its industry peers, raising concerns about its sustainability. While the stock has shown strong performance over the long term, with a 3-year return of 470.77%, its recent performance has been lackluster, with a year-to-date return of -3.83% compared to the Sensex's 6.81%. This underperformance, coupled with the elevated valuation ratios, reinforces the conclusion that Wockhardt is overvalued in the current market environment.