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 its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 14.52, an EV to EBITDA of -14.47, and a PEG ratio of 0.07, which suggests that while the earnings growth potential appears attractive, the current price does not reflect a favorable valuation.
In comparison to peers, Mehta Securities' PE ratio is higher than Life Insurance, which has a PE of 11.53 and is rated very attractive. Additionally, Bajaj Finance, rated very expensive, has a much higher PE ratio of 30.73. The negative EV to EBITDA ratio of Mehta Securities further underscores its overvaluation relative to its peers. Recent stock performance shows a strong return over three and five years compared to the Sensex, but this does not mitigate the current overvaluation concern.