Is Yatharth Hospit. overvalued or undervalued?

As of 7 October 2025, the valuation grade for Yatharth Hospital has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 51.60, an EV to EBIT of 40.10, and an EV to EBITDA of 29.57. These figures indicate that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Yatharth Hospital's PE ratio is significantly higher than Narayana Hrudaya, which has a PE of 46.06, and Apollo Hospitals, which stands at 70.33 but is classified as attractive. The high PEG ratio of 51.60 further emphasizes the overvaluation, especially when compared to more reasonably priced competitors. Notably, Yatharth Hospital has outperformed the Sensex over the past year with a return of 40.55% compared to the Sensex's 1.08%, but this strong performance does not mitigate the concerns regarding its current valuation.