Is R R Fin. Cons. overvalued or undervalued?

As of 14 July 2025, the valuation grade for R R Fin. Cons. has moved from fair to expensive, indicating a shift towards overvaluation. The company's current PE ratio stands at 34.62, while the EV to EBITDA ratio is 18.09, and the ROE is notably low at 3.19%. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, R R Fin. Cons. is significantly more expensive than Life Insurance, which has a PE ratio of 11.99 and an EV to EBITDA of 9.4. Additionally, Bajaj Finance is also categorized as very expensive with a PE ratio of 34.32, but it has a higher EV to EBITDA of 19.27. Given these metrics, R R Fin. Cons. appears to be overvalued relative to its industry peers. The company's strong stock performance, with a year-to-date return of 155.96% compared to the Sensex's 5.27%, further emphasizes this valuation concern.