Is Mega Corp. overvalued or undervalued?

As of 23 June 2025, Mega Corp. has moved from an expensive to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a PE Ratio of 52.20, an EV to EBITDA of 20.41, and a Price to Book Value of 2.12. In comparison to peers, Life Insurance is fairly valued with a PE of 12.3, while Bajaj Finance is also very expensive with a PE of 34.19.
Despite a strong historical performance with a 5-year return of 1169.68%, Mega Corp. has underperformed recently, with a year-to-date decline of 35.24% compared to the Sensex's gain of 4.81%. This suggests that the current high valuation may not be justified given the recent stock performance and the company's low ROE of 1.02% and ROCE of 5.42%.