Is Indbank Merchant overvalued or undervalued?

As of 27 June 2025, the valuation grade for Indbank Merchant has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 18.36, an EV to EBITDA of 6.81, and a ROE of 10.15%.
In comparison to its peers, Indbank Merchant's PE ratio aligns closely with Life Insurance, which has a PE of 12.53, while Bajaj Finance is significantly more expensive at 35.35. The company's recent stock performance shows a 3.92% return over the past week, outperforming the Sensex's 2.00% return in the same period, but it has underperformed over the longer term, with a year-to-date decline of 24.42% compared to the Sensex's gain of 7.58%. Overall, Indbank Merchant appears to be fairly valued within its industry context.