Is First Custodian overvalued or undervalued?

As of 10 November 2025, the valuation grade for First Custodian has moved from fair to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios highlight this concern, with a PE ratio of 32.14, an EV to EBIT of -121.65, and a PEG ratio of 0.00, suggesting that the company is not generating earnings relative to its price.
In comparison to its peers, First Custodian's PE ratio is lower than Bajaj Finance's 38.76 but significantly higher than Life Insurance's attractive PE of 11.14. Additionally, the EV to EBITDA ratio of -121.65 starkly contrasts with Bajaj Finserv's 13.13, further emphasizing the overvaluation. Despite a recent one-week stock return of 3.35% compared to a -0.53% return on the Sensex, the long-term performance shows a concerning YTD decline of 40.40%, reinforcing the notion that First Custodian is overvalued in the current market.