Is Five-Star Bus.Fi overvalued or undervalued?

As of 14 August 2025, the valuation grade for Five-Star Bus.Fi has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics, with a PE ratio of 15.80, an EV to EBITDA of 10.62, and a PEG ratio of 0.81, which suggests strong growth potential relative to its price.
In comparison to its peers, Five-Star Bus.Fi's PE ratio is significantly lower than Bajaj Finance, which stands at 30.73, and Bajaj Finserv at 32.28, both of which are categorized as very expensive. Additionally, its EV to EBITDA ratio is more favorable than that of Life Insurance, which is at 8.97, reinforcing the attractiveness of Five-Star Bus.Fi in the current market landscape. Despite the company's recent stock performance lagging behind the Sensex, particularly with a YTD return of -24.24% compared to the Sensex's 3.15%, the underlying financial ratios suggest that it is a compelling investment opportunity.