Is Munoth Capital overvalued or undervalued?

As of 14 August 2025, the valuation grade for Munoth Capital has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its high PE ratio of 155.78, an EV to EBITDA ratio of 155.76, and a Price to Book Value of 27.00. These ratios starkly contrast with its peers, such as Life Insurance, which boasts a PE ratio of 11.53 and an EV to EBITDA of 8.97, highlighting the substantial premium at which Munoth Capital is trading.
In comparison to other companies in the capital markets sector, Munoth Capital's PEG ratio of 0.85 is relatively favorable, yet it remains overshadowed by its exorbitant valuation metrics. Notably, Bajaj Finance, also categorized as very expensive, has a PE ratio of 30.73, further illustrating the outlier status of Munoth Capital. Despite its recent stock performance, which has outpaced the Sensex with a YTD return of 88.62% compared to the Sensex's 3.15%, the overall valuation suggests that investors may be overestimating the company's future growth potential.