Is Five-Star Bus.Fi overvalued or undervalued?

As of 10 October 2025, the valuation grade for Five-Star Bus.Fi has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently considered fairly valued. Key ratios include a PE ratio of 14.27, an EV to EBITDA of 9.86, and a PEG ratio of 0.73, which suggest that while the company is reasonably priced relative to its earnings growth, it may not present as much upside as before.
In comparison to its peers, Five-Star Bus.Fi's PE ratio is significantly lower than that of Bajaj Finance, which stands at 36.56, indicating that Five-Star is more attractively priced in terms of earnings. Conversely, it is slightly higher than Life Insurance's PE of 11.65, which is considered very attractive. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -31.55% compared to the Sensex's 5.58%, reinforcing the notion that the stock may be under pressure despite its current valuation status.