Is Prime Securities overvalued or undervalued?

As of 10 October 2025, the valuation grade for Prime Securities has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 28.34, an EV to EBITDA of 17.97, and a PEG ratio of 0.47, which suggests that despite the high valuation, growth expectations may not be fully reflected in the price.
In comparison to its peers, Prime Securities' PE ratio is lower than that of Bajaj Finance at 36.56, but higher than Life Insurance, which stands at 11.65. Additionally, the EV to EBITDA ratio of Prime Securities is also higher than that of Life Insurance, further supporting its overvaluation status. Notably, Prime Securities has outperformed the Sensex in recent periods, with a year-to-date return of 12.40% compared to the Sensex's 5.58%, which may contribute to the inflated valuation perception.