Is Religare Enterp. overvalued or undervalued?

As of 22 May 2025, the valuation grade for Religare Enterprises has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 62.24, significantly higher than peers like Life Insurance with a PE of 12.54 and Bajaj Finserv at 35.83. Additionally, the EV to EBITDA ratio for Religare is 23.14, which also exceeds the industry average, reinforcing the overvaluation stance.
In comparison to its peers, Religare's PEG ratio of 0.52 suggests potential growth, yet it still falls short of the more attractive valuations seen in competitors. The company's return metrics reveal a mixed performance, with a year-to-date return of -14.72% compared to the Sensex's 5.61%, highlighting the challenges it faces in the current market environment. Overall, Religare Enterprises is deemed overvalued, despite its recent grade change.