Is Munoth Capital overvalued or undervalued?

As of 14 August 2025, Munoth Capital's valuation grade has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 155.78, an EV to EBITDA ratio of 155.76, and a Price to Book Value of 27.00. These ratios highlight a stark contrast to its peers, such as Life Insurance, which has a PE ratio of 11.53 and an EV to EBITDA of 8.97, and Bajaj Finance, with a PE ratio of 30.73 and an EV to EBITDA of 17.64.
The current valuation metrics suggest that Munoth Capital is not only overvalued compared to its industry peers but also struggles with a negative ROCE of -5.22% and a low ROE of 3.12%. While the company has shown impressive returns year-to-date, outperforming the Sensex with an 88.62% increase, the high valuation ratios indicate that the stock may not sustain its current price levels in the long run.