Is Maruti Sec. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Maruti Sec. has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued. Key ratios highlight this situation: the PE ratio stands at an alarming -28.69, while the EV to EBITDA is also negative at -63.87, and the PEG ratio is at 0.00, suggesting no growth expectations.
In comparison to its peers, Maruti Sec. significantly underperforms against companies like Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, with a PE of 11.65. The stark contrast in these ratios reinforces the notion that Maruti Sec. is not only overvalued but also lacks the fundamentals to justify its current price. Despite a remarkable 1-year return of 553.33%, the recent trends show a decline in stock performance relative to the Sensex, further emphasizing the unsustainable nature of its valuation.