Alkem LaboratoriesNSE:ALKEM +1.13%97 PEG Ratio is 2.55 as of Jul. 05, 2026, which is 11% above its 10-year median of 2.29. GuruFocus rates NSE:ALKEM with a GF Score™ of 97/100 and a GF Value™ of ₹6,081.93 (Fairly Valued). The stock has 1 warning sign investors should review. Among 348 Drug Manufacturers companies, Alkem Laboratories ranks worse than 61.21% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Alkem Laboratories's PEG Ratio or its related term are showing as below:
NSE:ALKEM'
s PEG Ratio Range Over the Past 10 Years
Min: 1.02 Med: 2.29 Max: 4.28
Current: 2.55
During the past 13 years, Alkem Laboratories's highest PEG Ratio was 4.28. The lowest was 1.02. And the median was 2.29.
NSE:ALKEM's PEG Ratio is ranked worse than 61.21% of 348
companies
in the Drug Manufacturers industry
Industry Median: 1.7
vs NSE:ALKEM: 2.55
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Alkem Laboratories (NSE:ALKEM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Alkem Laboratories PEG Ratio Related Terms
Alkem Laboratories PEG Ratio Historical Data
* Premium members only.
The historical data trend for Alkem Laboratories's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alkem Laboratories PEG Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories's PEG Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Alkem Laboratories (NSE:ALKEM) has a PEG Ratio of 2.55 as of Jul. 05, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Alkem Laboratories and its competitors. This is 11% above median its historical median of 2.29. Over the past decade, Alkem Laboratories' PEG Ratio has ranged from 1.02 to 4.28. According to the industry distribution chart, Alkem Laboratories ranks #213 out of 348 companies in the Drug Manufacturers industry, placing it in the top 61.2%.
Is Alkem Laboratories' PEG Ratio too high?
Alkem Laboratories' current PEG Ratio of 2.55 is 11% above median its 10-year median of 2.29. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 4.28. The Drug Manufacturers industry median PEG Ratio is 1.70. Alkem Laboratories' value of 2.55 is 50% above this industry median. Based on the distribution chart, Alkem Laboratories ranks #213 out of 348 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Alkem Laboratories has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' PEG Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Alkem Laboratories ranks #213 out of 348 companies for PEG Ratio. This places Alkem Laboratories in the lower half of its industry. The industry median PEG Ratio is 1.70. Alkem Laboratories' value of 2.55 is 50% above this benchmark. Historically, Alkem Laboratories' own PEG Ratio has ranged from 1.02 to 4.28 over the past decade. While the company's 10-year median is 2.29 vs. the industry median of 1.70, Alkem Laboratories has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Drug Manufacturers company?
The median PEG Ratio among Drug Manufacturers companies is 1.70, based on 348 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alkem Laboratories's current PEG Ratio of 2.55 is 50% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Alkem Laboratories and its competitors. For the Drug Manufacturers industry, the median PEG Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current PEG Ratio is 2.55, which is 11% above median its own 10-year median of 2.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alkem Laboratories (NSE:ALKEM) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,081.93, compared to a current price of ₹5,562.50 — trading 8.5% below its estimated fair value. The current PEG Ratio is 2.55, which is 11% above median its 10-year median of 2.29 and 50% above the Drug Manufacturers industry median of 1.70. Alkem Laboratories' overall GF Score™ is 97/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current PEG Ratio is 2.55 as of Jul. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alkem Laboratories (NSE:ALKEM) Overvalued in 2026?
Based on GuruFocus' analysis, Alkem Laboratories stock appears to be undervalued.
The current stock price of ₹5,562.50 is trading 8.5% below its estimated GF Value™ of ₹6,081.93.
GuruFocus considers Alkem Laboratories to be Fairly Valued.
Key valuation signals for NSE:ALKEM:
PEG Ratio: 2.55 (11% above median its 10-year median of 2.29)
GF Value™: ₹6,081.93 vs. price of ₹5,562.50 (8.5% below fair value)
Industry Position: 50% above the Drug Manufacturers median (#213 of 348)
No single metric tells the full story. See the NSE:ALKEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.
97GF Score
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