Is Indostar Capital overvalued or undervalued?

As of 17 October 2025, the valuation grade for Indostar Capital has moved from expensive to very expensive. This indicates a significant shift in the company's perceived value, suggesting that it is currently overvalued. The company's key ratios reflect this assessment, with a PE ratio of -10.16, an EV to EBITDA of 27.67, and a Price to Book Value of 0.88, which are not favorable compared to its peers. In comparison to its industry peers, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance shows a PE of 11.49 and an EV to EBITDA of 8.94, both indicating a more attractive valuation. Given these comparisons, Indostar Capital appears overvalued in the current market context. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -13.38% compared to the Sensex's 7.44%, reinforcing the notion of overvaluation.