Is Alacrity Sec. overvalued or undervalued?

As of 23 June 2025, the valuation grade for Alacrity Sec. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Based on the analysis, the company appears to be overvalued. The PE ratio stands at 24.22, while the EV to EBITDA ratio is 23.49, both of which are significantly higher than peers like Life Insurance, which has a PE ratio of 12.3 and an EV to EBITDA of 9.67. Additionally, Bajaj Finserv, categorized as expensive, shows a PE ratio of 35.93, further highlighting Alacrity's relatively high valuation.
In terms of financial performance, Alacrity Sec. has a ROCE of 22.22% and a ROE of 19.48%, which are commendable but do not justify its current valuation levels. The company's recent stock performance has been poor, with a year-to-date return of -59.05%, contrasting sharply with the Sensex's positive return of 4.81% in the same period. This underperformance reinforces the conclusion that Alacrity Sec. is overvalued in the current market environment.