Is Mehta Securities overvalued or undervalued?

As of 14 August 2025, the valuation grade for Mehta Securities has moved from risky to very expensive, indicating a significant shift in perception regarding its valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 14.52, an EV to EBITDA of -14.47, and a ROE of 2.97%.
When compared to peers, Mehta Securities stands out with a higher PE ratio than Life Insurance, which is at 11.53, and a significantly lower PEG ratio of 0.07 compared to Bajaj Finance's 1.89. This suggests that while Mehta Securities has a relatively low growth expectation, its current valuation does not align well with its financial performance. Additionally, the stock has shown impressive returns over the past 5 years at 251.27%, significantly outperforming the Sensex's 112.79%, which may further complicate the valuation narrative.