Is Five-Star Bus.Fi overvalued or undervalued?

As of 30 October 2025, the valuation grade for Five-Star Bus.Fi has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a price-to-earnings (PE) ratio of 17.11, an EV to EBITDA ratio of 2.29, and a price-to-book value of 0.28, all of which suggest that the company is trading at a discount compared to its earnings and assets.
In comparison to its peers, Five-Star Bus.Fi's PE ratio is notably lower than that of Bajaj Finance, which stands at 37.56, and even lower than Life Insurance's PE of 11.69, highlighting its relative affordability. Additionally, the company has a PEG ratio of 1.32, which is competitive within the industry. Despite a year-to-date return of -16.59%, which contrasts with the Sensex's 8.02% gain, the current valuation metrics suggest that Five-Star Bus.Fi presents a compelling investment opportunity at its current price of 642.15.