Is New India Assura overvalued or undervalued?

As of 10 October 2025, the valuation grade for New India Assura has moved from expensive to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current metrics, with a PE ratio of 26.54, an EV to EBIT of 16.50, and a PEG ratio of 2.85. These figures suggest that the stock is priced at a premium compared to its earnings growth potential.
In comparison to its peers, New India Assura's valuation stands out unfavorably. For instance, Bajaj Finance has a much higher PE ratio of 36.56, while Life Insurance, which is rated very attractive, has a PE of just 11.65. Additionally, SBI Life Insurance, another peer rated very attractive, has a PE of 72.97. Given these comparisons, New India Assura's valuation does not justify its current price level, especially in light of its recent stock performance, which has lagged behind the Sensex returns over the past year.