Is Piramal Enterp. overvalued or undervalued?

As of 24 October 2024, the valuation grade for Piramal Enterprises has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios highlight this assessment, with a PE ratio of 77.46, an EV to EBITDA of 15.68, and a ROE of just 1.27%.
In comparison to peers, Piramal Enterprises' valuation stands out starkly, especially against Life Insurance, which has a PE ratio of 12.54 and EV to EBITDA of 9.89, indicating a more favorable valuation. Other peers like Bajaj Finance also show a PE of 35.01, which, while high, is still significantly lower than Piramal's. Additionally, Piramal's recent stock performance has outpaced the Sensex, with a 1-year return of 45.39% compared to the Sensex's 7.65%, but this does not mitigate the overvaluation indicated by its ratios.