Is Sangam Finserv overvalued or undervalued?

As of 30 June 2025, Sangam Finserv's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued, with a PE ratio of 26.88, an EV to EBIT ratio of 16.31, and a ROE of 4.95%. In comparison to its peers, Life Insurance is fairly valued with a PE of 12.74, while Bajaj Finance is classified as very expensive with a PE of 34.97, highlighting the relative overvaluation of Sangam Finserv within its industry.
Despite its strong historical performance, including a 1-year return of 77.57% compared to the Sensex's 5.79%, the current valuation metrics suggest that investors may be paying a premium for future growth that may not materialize. Overall, the combination of high valuation ratios and the peer comparison indicates that Sangam Finserv is overvalued in the current market environment.