Is Mercantile Vent. overvalued or undervalued?

As of 22 September 2025, Mercantile Vent. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 32.81, an EV to EBITDA of 317.91, and a PEG Ratio of 5.72, which indicate a high valuation relative to its earnings growth prospects.
In comparison to peers, Mercantile Vent. has a higher PE Ratio than Bajaj Finserv at 34.76 and Life Insurance at 11.76, both of which are in the same industry. The elevated EV to EBITDA ratio also stands out when compared to Bajaj Finance, which is at 19.46, highlighting the premium investors are paying for Mercantile Vent.'s earnings. Additionally, while the stock has outperformed the Sensex year-to-date with a return of 35.38% compared to the Sensex's 5.15%, the current valuation suggests that investors may be pricing in overly optimistic future growth.