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 market perception. The company is currently deemed overvalued. Key ratios include a PE Ratio of 14.52, an EV to EBITDA of -14.47, and a PEG Ratio of 0.07, all of which suggest that the stock is trading at a premium relative to its earnings potential.
In comparison to its peers, Mehta Securities' PE Ratio is higher than Life Insurance, which has a PE of 11.53 and is rated very attractive, while Bajaj Finance, rated very expensive, has a PE of 30.73. The negative EV to EBITDA ratio of Mehta Securities stands out as a notable outlier, further reinforcing the overvaluation narrative. Despite strong historical returns, including a 70.91% gain over three years, the current valuation metrics indicate that investors may be paying too much for future growth prospects.