Is Equitas Sma. Fin overvalued or undervalued?

As of 7 July 2025, the valuation grade for Equitas Small Finance has moved from expensive to fair, indicating a shift in its perceived value. The company is currently fairly valued. Key ratios include a PE ratio of 49.30, a Price to Book Value of 1.19, and a Dividend Yield of 1.57%.
In comparison to its peers, HDFC Bank and ICICI Bank are considered expensive with PE ratios of 22.63 and 21.68, respectively. Notably, Equitas Small Finance's PEG ratio is 0.00, suggesting that it may not be growing at a pace that justifies its current valuation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-year return of -31.02% compared to the Sensex's 4.31% return, reinforcing the notion that the stock may be fairly valued at this time.