Is Sangam Finserv overvalued or undervalued?

As of 7 November 2025, Sangam Finserv's valuation grade has moved from fair to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 18.62, an EV to EBITDA of 12.12, and a PEG ratio of 3.85, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Sangam Finserv's valuation appears high; for instance, Bajaj Finance is rated as very expensive with a PE of 38.09, while Life Insurance is considered very attractive with a PE of 11.44. The disparity in these ratios indicates that Sangam Finserv is not only overvalued relative to its direct competitors but also lacks the growth justification that some of its peers exhibit. Despite a strong recent performance with a 14.42% return over the past week, the longer-term outlook shows a decline of 33.93% year-to-date, reinforcing the notion that the current valuation may not be sustainable.