Is Alacrity Sec. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Alacrity Sec. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios reflect this assessment, with a PE ratio of 25.95, an EV to EBIT of 26.17, and an EV to EBITDA of 25.23, which are substantially higher than many of its peers.
In comparison, Life Insurance, which is rated fair, has a PE ratio of 12.53 and an EV to EBITDA of 9.88, while Bajaj Finance, also very expensive, shows a PE of 35.35 but a much lower EV to EBITDA of 19.63. The stark contrast in these ratios suggests that Alacrity Sec. is priced at a premium without justifiable performance metrics. Additionally, the company's stock has underperformed against the Sensex over the past year, with a return of -25.7% compared to the Sensex's 6.08%, further reinforcing the notion that it is overvalued.