Is Five-Star Bus.Fi overvalued or undervalued?

As of 28 August 2025, the valuation grade for Five-Star Bus.Fi has moved from very attractive to attractive. The company is currently considered overvalued. Key ratios include a PE ratio of 15.01, an EV to EBITDA of 10.23, and a PEG ratio of 0.77, which indicates that while the company is generating reasonable returns, its valuation does not justify the current price level compared to its peers.
In comparison to its peers, Life Insurance has a PE ratio of 11.27 and an EV to EBITDA of 8.74, suggesting it is undervalued, while Bajaj Finance is considered very expensive with a PE ratio of 31.28. Additionally, Five-Star Bus.Fi's recent stock performance has lagged behind the Sensex, with a year-to-date return of -28% compared to the Sensex's 2.48%, reinforcing the notion that the stock may be overvalued at its current price of 554.35.