Is Alacrity Sec. overvalued or undervalued?

As of 20 June 2025, Alacrity Sec. has moved from expensive to very expensive in its valuation grade. The company is currently overvalued based on its key financial ratios, which include a PE Ratio of 26.31, an EV to EBIT of 26.54, and an EV to EBITDA of 25.59. In comparison to its peers, Life Insurance is fairly valued with a PE Ratio of 12.26, while Bajaj Finance is also very expensive with a PE of 33.79, highlighting the relative overvaluation of Alacrity Sec.
Despite a strong ROCE of 22.22% and ROE of 19.48%, the company's valuation metrics suggest that it is priced too high relative to its earnings potential. Additionally, Alacrity Sec.'s stock has underperformed against the Sensex over the past year, with a return of -27.03% compared to the Sensex's 6.36%, further reinforcing the notion of overvaluation.