Is Mega Corp. overvalued or undervalued?

As of 25 June 2025, Mega Corp. has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued in the current market context. The PE ratio stands at 50.60, significantly higher than its peers, such as Life Insurance with a PE of 12.45 and Bajaj Finserv at 36.28. Additionally, Mega Corp.'s EV to EBITDA ratio is 20.08, which is also elevated compared to its competitors.
In terms of financial performance, Mega Corp. shows a ROCE of 5.42% and a ROE of 1.02%, both of which are relatively low, suggesting inefficiencies in generating returns on capital and equity. The company's PEG ratio is 0.00, indicating no growth expectations priced in, which further supports the overvaluation thesis. While Mega Corp. has outperformed the Sensex over longer periods, its recent performance has lagged, with a year-to-date decline of 37.22% compared to a 5.91% gain for the Sensex. Overall, the valuation metrics and peer comparisons suggest that Mega Corp. is overvalued.