Is Madhusudan Sec. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Madhusudan Sec. has moved from risky to very expensive. The company is currently overvalued, indicated by a PE ratio of -67.21, an EV to EBITDA of -9.58, and a Price to Book Value of 0.49. These ratios highlight significant financial distress, particularly the negative PE and EV ratios, which suggest that the company's earnings and enterprise value are under severe pressure.
In comparison to its peers, Madhusudan Sec. stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance shows a more attractive valuation with a PE of 11.49. Additionally, the company's recent stock performance has been lackluster, with a year-to-date return of -12.28% compared to the Sensex's gain of 7.44%, further reinforcing the perception of overvaluation.