Is Arman Financial overvalued or undervalued?

As of 2 June 2025, the valuation grade for Arman Financial has moved from fair to very expensive. The company is currently overvalued, with a PE ratio of 31.13, an EV to EBITDA of 7.90, and a Price to Book Value of 1.85. In comparison to its peers, Life Insurance has a fair PE ratio of 12.54, while Bajaj Finance is also categorized as very expensive with a PE ratio of 35.01, indicating that Arman Financial's valuation is significantly higher than that of some of its competitors.
Despite strong returns over the past five years, with a 306.49% increase compared to the Sensex's 143.05%, the current valuation metrics suggest that investors may be paying a premium for future growth that may not materialize. Overall, Arman Financial's high valuation ratios and the comparison with its peers indicate that it is overvalued in the current market context.