Is Bajaj Holdings overvalued or undervalued?

As of 2 February 2024, Bajaj Holdings has moved from an attractive to a very expensive valuation grade. The company is currently overvalued based on its financial ratios, with a PE ratio of 24.32, a Price to Book Value of 2.53, and an EV to EBITDA ratio of 314.20. These figures indicate a premium compared to its peers, such as Life Insurance, which has a PE ratio of 12.54 and an EV to EBITDA of 9.89, and I R F C, with a PE ratio of 29.42 and an EV to EBITDA of 22.12.
The high valuation is further supported by a PEG ratio of 0.00 and a dividend yield of only 0.60%, which suggests limited growth prospects relative to its price. Despite recent strong stock performance, with a 1-year return of 69.91% compared to the Sensex's 7.60%, the current valuation metrics indicate that Bajaj Holdings is not justified at its current price level.