Is First Custodian overvalued or undervalued?

As of 24 October 2025, First Custodian's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 14.50, a price to book value of 0.83, and a negative EV to EBIT ratio of -0.62. These figures suggest that the stock is trading below its intrinsic value when compared to its earnings and book value.
In comparison to its peers, First Custodian's valuation metrics stand out favorably. For instance, Bajaj Finance is classified as very expensive with a PE ratio of 38.9, while Life Insurance is deemed very attractive with a PE of 11.55. This positions First Custodian as a more appealing investment opportunity within the Non-Banking Financial Company sector. Despite recent underperformance against the Sensex, with a year-to-date return of -43.01% compared to the Sensex's 7.77%, the long-term outlook remains promising, especially given its strong historical performance over the past five and ten years.