Is Zydus Wellness overvalued or undervalued?

As of 24 September 2025, Zydus Wellness has moved from a fair to an expensive valuation grade. The company's current valuation indicates it is overvalued. Key ratios include a PE ratio of 48.28, an EV to EBITDA of 41.11, and a PEG ratio of 8.30, all suggesting a high valuation relative to earnings growth potential.
In comparison to its peers, Zydus Wellness's PE ratio is lower than Hindustan Unilever's 56.54 and Nestle India's 75.61, but still places it in the expensive category alongside Britannia Industries, which has a PE of 65.63. Notably, while Zydus has performed well recently, with a year-to-date return of 25.02% compared to the Sensex's 4.58%, this does not mitigate its current overvaluation status.