Is Sangam Finserv overvalued or undervalued?

As of 2 July 2025, Sangam Finserv's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 27.55, an EV to EBIT of 16.69, and an EV to EBITDA of 16.45. Compared to its peers, Sangam Finserv's valuation aligns closely with Life Insurance, which has a PE of 12.54 and an EV to EBITDA of 9.89, while it is notably lower than Bajaj Finance, which is considered very expensive with a PE of 34.46.
Despite the recent fluctuations in stock performance, Sangam Finserv has shown a remarkable 84.60% return over the past year, significantly outperforming the Sensex's 5.00% return in the same period. This strong performance, coupled with its fair valuation, suggests that the company may be positioned well for future growth within the Non-Banking Financial Company sector.