Is Master Trust overvalued or undervalued?

As of 30 May 2025, the valuation grade for Master Trust has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE ratio of 13.25, an EV to EBIT of 1.66, and a PEG ratio of 0.75, all of which suggest that the stock is priced favorably compared to its earnings growth potential.
In comparison to its peers, Master Trust's PE ratio of 13.25 is lower than that of Life Insurance at 12.54, which is rated fair, while it is significantly more attractive than Bajaj Finance, which is deemed very expensive with a PE of 35.01. Additionally, Master Trust's EV to EBITDA of 1.64 further emphasizes its competitive positioning within the capital markets industry. Notably, the company has outperformed the Sensex over the past year, with a return of 11.56% compared to the Sensex's 7.63%, reinforcing the narrative of its undervaluation.