Is Prime Securities overvalued or undervalued?

As of 7 November 2025, the valuation grade for Prime Securities has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 30.49, an EV to EBITDA of 23.40, and a Price to Book Value of 4.92, all of which indicate a premium valuation compared to its peers.
In comparison to notable competitors, Bajaj Finance has a PE ratio of 38.09 and an EV to EBITDA of 20.2, while Life Insurance stands out with a very attractive PE ratio of 11.44 and an EV to EBITDA of just 0.37. These comparisons highlight that Prime Securities is trading at a higher valuation relative to some peers, suggesting that it may not justify its current price level. Additionally, while the stock has outperformed the Sensex on a year-to-date basis, returning 9.62% compared to the Sensex's 6.50%, the longer-term performance shows a decline of 9.50% over the past year, reinforcing the notion of overvaluation.