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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Natco PharmaNSE:NATCOPHARM +1.18%89 PEG Ratio is 0.32 as of Jul. 22, 2026, which is 48% below its 10-year median of 0.61. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹926.93 (Fairly Valued). The stock has 2 warning signs investors should review. Among 350 Drug Manufacturers companies, Natco Pharma ranks better than 93.14% 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 Natco Pharma's PEG Ratio or its related term are showing as below:
NSE:NATCOPHARM'
s PEG Ratio Range Over the Past 10 Years
Min: 0.19 Med: 0.61 Max: 8.93
Current: 0.32
During the past 13 years, Natco Pharma's highest PEG Ratio was 8.93. The lowest was 0.19. And the median was 0.61.
NSE:NATCOPHARM's PEG Ratio is ranked better than 93.14% of 350
companies
in the Drug Manufacturers industry
Industry Median: 1.775
vs NSE:NATCOPHARM: 0.32
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Natco Pharma (NSE:NATCOPHARM) 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.
Natco Pharma PEG Ratio Related Terms
Natco Pharma PEG Ratio Historical Data
* Premium members only.
The historical data trend for Natco Pharma'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, Natco Pharma'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.
Natco Pharma PEG Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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.
Natco Pharma (NSE:NATCOPHARM) has a PEG Ratio of 0.32 as of Jul. 22, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Natco Pharma and its competitors. This is 48% below median its historical median of 0.61. Over the past decade, Natco Pharma's PEG Ratio has ranged from 0.19 to 8.93. According to the industry distribution chart, Natco Pharma ranks #24 out of 350 companies in the Drug Manufacturers industry, placing it in the top 6.9%.
Is Natco Pharma's PEG Ratio too high?
Natco Pharma's current PEG Ratio of 0.32 is 48% below median its 10-year median of 0.61. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 8.93. The Drug Manufacturers industry median PEG Ratio is 1.78. Natco Pharma's value of 0.32 is 82% below this industry median. Based on the distribution chart, Natco Pharma ranks #24 out of 350 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Natco Pharma has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's PEG Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #24 out of 350 companies for PEG Ratio. This places Natco Pharma in the top 7% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 1.78. Natco Pharma's value of 0.32 is 82% below this benchmark. Historically, Natco Pharma's own PEG Ratio has ranged from 0.19 to 8.93 over the past decade. While the company's 10-year median is 0.61 vs. the industry median of 1.78, Natco Pharma has consistently been below 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 1.78, based on 350 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. Natco Pharma's current PEG Ratio of 0.32 is 82% below 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median PEG Ratio is 1.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current PEG Ratio is 0.32, which is 48% below median its own 10-year median of 0.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹926.93, compared to a current price of ₹961.90 — trading 3.8% above its estimated fair value. The current PEG Ratio is 0.32, which is 48% below median its 10-year median of 0.61 and 82% below the Drug Manufacturers industry median of 1.78. Natco Pharma's overall GF Score™ is 89/100 with 2 warning signs 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 Natco Pharma (NSE:NATCOPHARM), the current PEG Ratio is 0.32 as of Jul. 22, 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹961.90 is trading 3.8% above its estimated GF Value™ of ₹926.93.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
PEG Ratio: 0.32 (48% below median its 10-year median of 0.61)
GF Value™: ₹926.93 vs. price of ₹961.90 (3.8% above fair value)
Industry Position: 82% below the Drug Manufacturers median (#24 of 350)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
89GF Score
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