Is Maruti Sec. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Maruti Sec. has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial ratios, with a PE ratio of 1.81 and an EV to EBITDA ratio also at 1.81. Notably, the price to book value stands at -1.09, reflecting negative capital employed and a negative return on equity, which further supports the overvaluation assessment.
In comparison to its peers, Maruti Sec.'s valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance boasts a PE of 11.49 and an EV to EBITDA of 8.94, both of which highlight the disparity in valuation. Additionally, Maruti Sec. has underperformed significantly against the Sensex, with a one-week return of -21.3% compared to the Sensex's 1.76% gain, reinforcing the notion that the stock is currently overvalued.