Is Angel One overvalued or undervalued?

As of 12 June 2025, the valuation grade for Angel One has moved from very expensive to expensive. The company is currently considered overvalued based on its key financial ratios. The price-to-earnings (PE) ratio stands at 23.23, while the price-to-book value is at 4.84, and the EV to EBITDA ratio is 9.51. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Angel One's PE ratio is significantly higher than Life Insurance, which has a PE of 12.36, and I R F C, which is at 28.23. This indicates that Angel One may not justify its current valuation relative to its peers in the capital markets industry. Additionally, while the stock has shown a strong return over the past three years at 107.23%, its recent performance has lagged behind the Sensex with a 1-week return of -7.98%. Overall, these factors contribute to the conclusion that Angel One is overvalued in the current market environment.