Is My Mudra Fin. overvalued or undervalued?

As of 25 June 2025, the valuation grade for My Mudra Fin. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 9.26, an EV to EBIT of 6.88, and an ROE of 53.64%. In comparison to peers, Life Insurance has a PE of 12.45 and Bajaj Finance has a significantly higher PE of 34.67, indicating that My Mudra Fin. is trading at a lower valuation despite its high return metrics.
The company's recent performance has been underwhelming, with a year-to-date return of -8.5%, contrasting sharply with the Sensex's gain of 6.77% during the same period. This further supports the conclusion that My Mudra Fin. is overvalued relative to its peers and market performance.