Is Mercantile Vent. overvalued or undervalued?

As of 30 October 2025, the valuation grade for Mercantile Vent. has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 28.27, a price to book value of 0.98, and an EV to EBITDA ratio of 317.24. In comparison to its peers, Bajaj Finance is considered very expensive with a PE ratio of 37.56, while Life Insurance stands out as very attractive with a PE ratio of 11.69.
The company's ROE is at 3.47%, which is relatively low compared to the industry standards, indicating potential concerns regarding profitability. Notably, Mercantile Vent. has outperformed the Sensex with a year-to-date return of 26.03% compared to the Sensex's 8.02%, reinforcing the narrative that the stock is currently fairly valued amidst its recent performance.