Is Mercantile Vent. overvalued or undervalued?

As of 23 October 2025, the valuation grade for Mercantile Vent. has moved from fair to attractive, indicating a more favorable assessment of its value. The company is currently considered undervalued. Key ratios include a PE Ratio of 29.82, an EV to EBITDA of 288.30, and a PEG Ratio of 5.20, which suggest that while the company has a high valuation relative to earnings, its growth expectations may not fully justify that premium.
In comparison to peers, Mercantile Vent. stands out against Bajaj Finance, which has a much higher PE Ratio of 39.07, and Life Insurance, which is valued more attractively with a PE of 11.68. This positions Mercantile Vent. as a potentially better investment opportunity within its sector. Additionally, the company's recent stock performance has outpaced the Sensex over one year, returning 20.04% compared to the Sensex's 5.59%, reinforcing the narrative of its undervaluation.