Is Mega Corp. overvalued or undervalued?

As of 28 July 2025, Mega Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its high valuation metrics. The PE ratio stands at 51.80, while the EV to EBITDA ratio is at 20.33, both significantly higher than industry peers such as Life Insurance with a PE of 11.66 and Bajaj Finserv at 33.23.
In comparison to its peers, Mega Corp.'s PEG ratio is notably at 0.00, indicating no growth expectations priced in, which contrasts sharply with Bajaj Finance's PEG of 1.93. The company's ROCE is at 5.42%, and ROE is a mere 1.02%, suggesting inefficiencies relative to its peers. Despite a strong historical performance over the long term, with a 5-year return of 831.27% compared to the Sensex's 110.15%, the current valuation metrics indicate that Mega Corp. is overvalued in the current market environment.