Is Five-Star Bus.Fi overvalued or undervalued?

As of 4 September 2025, the valuation grade for Five-Star Bus.Fi has moved from attractive to very attractive. The company is currently considered undervalued. Key ratios include a PE ratio of 14.27, an EV to EBITDA of 9.86, and a PEG ratio of 0.73, all of which suggest that the company is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Five-Star Bus.Fi's PE ratio of 14.27 is significantly lower than Bajaj Finance's 33.36 and Bajaj Finserv's 33.62, both of which are categorized as very expensive. Additionally, Life Insurance, which is very attractive, has a PE ratio of 11.41, further highlighting Five-Star Bus.Fi's relative valuation appeal. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -30.38% compared to the Sensex's 3.30%, the underlying fundamentals suggest a compelling investment opportunity.