Is Mega Corp. overvalued or undervalued?

Jun 23 2025 08:00 AM IST
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As of June 20, 2025, Mega Corp. is considered overvalued with a PE ratio of 51.20 and an EV to EBITDA of 20.20, significantly higher than its peer Life Insurance, and despite strong historical performance, it has seen a year-to-date return of -36.48% compared to the Sensex's 5.46%.
As of 20 June 2025, Mega Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 51.20, an EV to EBITDA ratio of 20.20, and a ROCE of 5.42%. In comparison, Life Insurance, a peer in the same industry, has a PE ratio of 12.26 and an EV to EBITDA of 9.63, indicating that Mega Corp. is trading at a significant premium relative to its peers.

Despite a strong historical performance over the long term, with a 5-year return of 1183.09% compared to the Sensex's 137.27%, recent trends show a decline, with a year-to-date return of -36.48% against the Sensex's 5.46%. This discrepancy further supports the conclusion that Mega Corp. is overvalued in the current market environment.
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