Is JSW Holdings overvalued or undervalued?

As of 8 November 2024, the valuation grade for JSW Holdings has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently assessed as overvalued. Key ratios highlight this position: the PE ratio stands at 134.84, the EV to EBIT ratio is 112.82, and the PEG ratio is 5.21, all of which are substantially higher than industry norms.
In comparison to peers, JSW Holdings' valuation metrics are starkly elevated; for instance, Life Insurance has a PE ratio of 12.54 and Bajaj Finance has a PE ratio of 35.01, both indicating a more reasonable valuation. Additionally, the company has shown remarkable stock performance, with a year-to-date return of 51.55%, significantly outpacing the Sensex's 5.59% return, which further emphasizes its current overvaluation in the market.