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 deemed overvalued. Key ratios highlight this concern, with a PE ratio of 1.81, an EV to EBIT of 1.81, and an EV to Sales of 1.64.
In comparison to its peers, Maruti Sec. stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a much more attractive EV to EBITDA of 8.94. The stark contrast in these ratios suggests that Maruti Sec. is not only overvalued relative to its peers but also faces challenges with negative returns on capital employed and book value. Additionally, the company's recent stock performance has significantly lagged behind the Sensex, with a 1-month return of -33.96% compared to the Sensex's 1.52%, reinforcing the overvaluation narrative.