Is Prime Securities overvalued or undervalued?

As of 6 November 2025, the valuation grade for Prime Securities has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 31.16, a Price to Book Value of 5.03, and an EV to EBITDA ratio of 24.04. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Bajaj Finance has a higher PE ratio of 37.19 and an EV to EBITDA of 19.89, while Life Insurance stands out with a much lower PE of 11.62 and an EV to EBITDA of 9.05, highlighting the disparity in valuations within the sector. Additionally, Prime Securities has shown strong returns in the short term, outperforming the Sensex over the past week and month, but its long-term performance has lagged behind the index over the past year. Overall, the current valuation suggests that investors should approach Prime Securities with caution.