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. This indicates a significant shift in the company's perceived value, leading to the conclusion that it is overvalued. Key ratios supporting this assessment include a PE Ratio of 26.54, an EV to EBIT of 16.50, and a PEG Ratio of 2.85, all of which suggest that the stock is priced at a premium compared to its earnings and growth potential.
In comparison to its peers, New India Assura's valuation appears elevated, particularly when contrasted with Life Insurance, which has a PE Ratio of 11.65 and is categorized as very attractive. Additionally, Bajaj Finance, another peer, has a much higher PE Ratio of 36.56 while also being classified as very expensive. This disparity highlights the relative overvaluation of New India Assura within its industry. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -4.03% compared to the Sensex's 5.58%, reinforcing the notion that the stock may be overpriced.