Is First Custodian overvalued or undervalued?

As of 17 November 2025, the valuation grade for First Custodian has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 32.50, while the Price to Book Value is at 0.89, and the EV to EBIT is notably low at 0.18.
In comparison to its peers, First Custodian's PE ratio is higher than Bajaj Finance's 34.85 and Bajaj Finserv's 34.31, both classified as expensive, while significantly lower than Life Insurance's attractive valuation of 11.33. Additionally, the company's ROE of 2.74% raises concerns when viewed against the backdrop of its peers. Despite a recent 1-month stock return of 4.60%, it has underperformed the Sensex, which returned 1.19% in the same period, further emphasizing its overvaluation status.