Is Mercantile Vent. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Mercantile Vent. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 34.44, an EV to EBITDA of 333.98, and a PEG ratio of 6.01, all of which suggest that the stock is priced significantly higher than its earnings growth potential.
In comparison to its peers, Mercantile Vent.'s PE ratio is slightly lower than Bajaj Finance's 34.56 but higher than Bajaj Finserv's 34.21, both of which are categorized as expensive. In contrast, Life Insurance stands out with a very attractive PE ratio of 11.4, highlighting the disparity in valuation within the sector. Notably, Mercantile Vent. has outperformed the Sensex over various time frames, including a year-to-date return of 37.72% compared to the Sensex's 4.21%, which may have contributed to its elevated valuation.