Is NBI Indl. Fin. overvalued or undervalued?

As of 5 June 2025, the valuation grade for NBI Industrial Finance has moved from fair to expensive, indicating a shift in its perceived value. The company is currently overvalued based on its high valuation multiples, including a PE ratio of 61.54, an EV to EBIT ratio of 47.31, and a PEG ratio of 11.33. These figures suggest that investors are paying a premium for the company's earnings growth, which may not be sustainable.
In comparison to its peers, NBI Industrial Finance's valuation stands out significantly. For instance, Life Insurance, which is rated fair, has a PE ratio of 12.54, while Bajaj Finance is categorized as very expensive with a PE of 35.01. This stark contrast highlights NBI's overvaluation in the current market context. Additionally, while the stock has outperformed the Sensex over the past year with a return of 46.99% compared to the Sensex's 7.82%, the substantial drop of 33.82% year-to-date raises concerns about its future performance and sustainability at these elevated valuation levels.