Is Indbank Merchant overvalued or undervalued?

As of 10 October 2025, the valuation grade for Indbank Merchant has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 24.87, an EV to EBITDA of 9.37, and a ROE of 8.46%.
In comparison to its peers, Indbank Merchant's PE ratio is significantly higher than Life Insurance, which has a PE of 11.65 and is rated very attractive, while Bajaj Finance is categorized as very expensive with a PE of 36.56. The recent stock performance shows a strong return of 31.96% over the past week, significantly outpacing the Sensex return of 1.59%, but this does not negate the overall overvaluation indicated by the current ratios.