Is N S D L overvalued or undervalued?

As of 29 August 2025, the valuation grade for N S D L has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 72.17, an EV to EBITDA ratio of 63.13, and a Price to Book Value of 12.35. These ratios suggest that the company's stock price is not justified by its earnings or book value.
In comparison to its peers, N S D L's valuation metrics are notably higher. For instance, Bajaj Finance has a PE ratio of 31.3 and an EV to EBITDA of 17.84, while Life Insurance boasts a PE of 11.08 and an EV to EBITDA of 8.57, both indicating more attractive valuations. Additionally, N S D L's recent stock performance has lagged behind the Sensex, with a 1-week return of -2.92% compared to the Sensex's -1.84%, reinforcing the notion that the stock is overvalued in the current market environment.