Is Indostar Capital overvalued or undervalued?

As of 20 October 2025, the valuation grade for Indostar Capital has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Notably, Indostar Capital has a PE ratio of -10.43, an EV to EBITDA ratio of 27.90, and a Price to Book Value of 0.90, which are concerning indicators of its valuation. In comparison to its peers, Bajaj Finance has a significantly higher PE ratio of 38.6, while Life Insurance shows a more attractive valuation with a PE of 11.57. Additionally, Bajaj Finserv, also categorized as expensive, has a PE of 35.87. The recent stock performance of Indostar Capital has lagged behind the Sensex, with a year-to-date return of -11.13% compared to the Sensex's 7.97%, reinforcing the notion that the stock is overvalued in its current state.