Is New India Assura overvalued or undervalued?

As of 13 June 2025, the valuation grade for New India Assura has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial ratios, which include a PE Ratio of 29.66, an EV to EBIT of 13.96, and a Price to Book Value of 1.06. Compared to its peers, New India Assura's valuation appears high, particularly when juxtaposed with Life Insurance, which has a PE Ratio of 12.28 and an EV to EBITDA of 9.65, both categorized as fair.
In the context of recent performance, New India Assura has faced a decline of 22.79% over the past year, while the Sensex has gained 5.61%. This disparity further reinforces the notion that the stock may be overvalued, especially when considering its relatively low ROE of 3.58% and a PEG Ratio of 0.00, which suggests limited growth prospects. Overall, the combination of high valuation ratios and poor stock performance relative to the market indicates that New India Assura is overvalued.