Is Indbank Merchant overvalued or undervalued?

As of 24 April 2025, Indbank Merchant's valuation grade has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 18.97, an EV to EBITDA ratio of 7.24, and a ROE of 10.15%. In comparison to its peers, Life Insurance has a PE ratio of 12.54 and an EV to EBITDA of 9.89, while Bajaj Finance is considered very expensive with a PE of 35.01 and an EV to EBITDA of 19.51.
Despite the recent shift in valuation, Indbank Merchant has shown strong performance in the long term, with a 5-year return of 409.65%, significantly outpacing the Sensex's 142.99% over the same period. However, the company's year-to-date return of -21.31% indicates a challenging market environment. Overall, the current valuation suggests that Indbank Merchant is fairly positioned within its industry.