Is Sangam Finserv overvalued or undervalued?

As of 4 July 2025, Sangam Finserv has moved from a fair valuation to an expensive rating. The company is currently overvalued, with a PE ratio of 27.59, an EV to EBIT of 16.71, and a ROE of 4.95%. In comparison to its peers, Life Insurance has a fair PE ratio of 12.32 and Bajaj Finserv is rated expensive with a PE of 35.91, highlighting that Sangam Finserv's valuation is significantly higher than some of its competitors in the Non-Banking Financial Company (NBFC) sector.
Despite a strong historical performance, including a 1-year return of 89.87%, the recent trends indicate a decline, with a year-to-date drop of 25.53% compared to a 6.77% gain in the Sensex. This suggests that while the company has performed well in the long term, its current valuation does not align with its recent performance and market conditions, reinforcing the conclusion that Sangam Finserv is overvalued.