Is Galada Finance overvalued or undervalued?

As of 13 November 2025, the valuation grade for Galada Finance has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 34.60, an EV to EBIT of 15.34, and a ROE of 4.50%.
In comparison to peers, Bajaj Finance has a PE ratio of 34.18 and an EV to EBITDA of 19.37, while Life Insurance stands out with a very attractive PE ratio of 11.18 and an EV to EBITDA of 9.22. Despite Galada Finance's strong stock performance, with a year-to-date return of 25.27% compared to the Sensex's 8.11%, the elevated valuation metrics suggest that the stock may not be a prudent investment at current levels.