Is Mega Corp. overvalued or undervalued?

As of 20 June 2025, Mega Corp. has seen its valuation grade change from very expensive to expensive. The company is currently considered overvalued based on its high PE ratio of 51.20, an EV to EBITDA of 20.20, and a ROE of only 1.02%. In comparison to its peers, Life Insurance is fairly valued with a PE of 12.26, while Bajaj Finance is very expensive at a PE of 33.79, highlighting the significant premium Mega Corp. commands despite its relatively low return metrics.
The valuation metrics suggest that Mega Corp. is not justified in its current pricing, especially when considering its recent performance against the Sensex, where it has underperformed significantly year-to-date with a return of -36.48% compared to the Sensex's 5.46%. These factors collectively indicate that Mega Corp. is overvalued in the current market environment.