Is Prime Securities overvalued or undervalued?

As of 15 July 2025, the valuation grade for Prime Securities has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a PE ratio of 28.76, an EV to EBITDA of 19.43, and a PEG ratio of 0.32, which suggests that while growth expectations may be high, the current price does not justify the valuation when compared to peers.
In comparison to its peers, Life Insurance has a PE ratio of 12.11 and Bajaj Finserv has a PE of 36.69, indicating that Prime Securities is trading at a premium relative to some competitors while still being less expensive than others. The company's recent stock performance has outpaced the Sensex, with a one-year return of 19.49% compared to the Sensex's 2.36%, which may reflect investor optimism but does not alter the fundamental valuation concerns.