Is Alacrity Sec. overvalued or undervalued?

As of 2 June 2025, the valuation grade for Alacrity Sec. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, given its elevated PE ratio of 27.03, EV to EBIT of 27.29, and EV to EBITDA of 26.31. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Alacrity Sec. stands out with a much higher PE ratio than Life Insurance, which is fairly valued at 12.54, and Bajaj Finserv, which is considered expensive with a PE of 35.83. This stark contrast highlights the overvaluation of Alacrity Sec. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -55.06%, significantly lagging behind the Sensex's gain of 5.61% in the same period.