Is Angel One overvalued or undervalued?

As of 4 June 2025, the valuation grade for Angel One has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 24.86, an EV to EBITDA of 10.48, and a ROE of 20.85%.
In comparison to its peers, Angel One's valuation stands out as very expensive, particularly when contrasted with similar companies in the industry, which typically exhibit lower PE ratios and EV to EBITDA values. For instance, while Angel One has a PE of 24.86, other comparable firms may show more favorable valuations. Additionally, Angel One's recent stock performance has outpaced the Sensex, with a 1-month return of 37.43% compared to the Sensex's 3.83%, further emphasizing the market's optimistic outlook despite the overvaluation.