Is Mercantile Vent. overvalued or undervalued?

As of 10 November 2025, the valuation grade for Mercantile Vent. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 27.49, an EV to EBIT ratio of 308.29, and a ROE of 3.47%. In comparison, Bajaj Finance, another peer, has a much higher PE ratio of 38.76, while Life Insurance stands out with a significantly lower PE ratio of 11.14, highlighting the disparity in valuation within the sector.
The company's performance against the Sensex shows a year-to-date return of 22.56%, which is notably higher than the Sensex's return of 6.91%, suggesting that while Mercantile Vent. has performed well recently, its current valuation does not justify the price given the high ratios relative to its peers. Overall, the combination of high valuation ratios and the recent grade change suggests that Mercantile Vent. is overvalued in the current market environment.