Is Maruti Sec. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Maruti Sec. has moved from risky to very expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 2.91, an EV to EBIT of 5.61, and an EV to Sales of 5.11, all of which indicate a significant premium compared to its peers. For instance, Bajaj Finance has a PE ratio of 33.36 and an EV to EBITDA of 18.56, while Life Insurance boasts a PE of 11.41 and an EV to EBITDA of 8.87, highlighting Maruti Sec.'s inflated valuation.
Additionally, Maruti Sec.'s recent stock performance has significantly outpaced the Sensex, with a remarkable 740.67% return over the past year compared to a -1.98% return for the index. This stark contrast further emphasizes the overvaluation of the stock, suggesting that despite strong historical returns, the current price does not reflect its underlying value.