Is Yatharth Hospit. overvalued or undervalued?

As of 27 May 2025, the valuation grade for Yatharth Hospital has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 39.16, an EV to EBITDA of 20.92, and a ROCE of 14.80%. In comparison to its peers, Yatharth Hospital's valuation metrics are significantly lower than those of Max Healthcare Institute Ltd., which has a PE ratio of 100.29, and Apollo Hospitals Enterprise Ltd., which has a PE ratio of 69.03.
Despite being fairly valued, Yatharth Hospital has demonstrated strong performance in the past year, with a stock return of 29.38%, significantly outpacing the Sensex return of 7.53% during the same period. This performance, coupled with its competitive ratios, suggests that the company may have room for growth within the healthcare sector.