Is Saraswati Commer overvalued or undervalued?

As of 30 May 2025, the valuation grade for Saraswati Commer has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 27.51, while the EV to EBITDA ratio is also at 21.16, both of which are relatively high compared to industry norms.
In comparison to peers, Saraswati Commer's valuation appears inflated; for instance, a competitor in the same sector has a significantly lower PE ratio, suggesting that the market may be pricing Saraswati Commer too aggressively. The company's return on equity (ROE) is at 5.52%, which is not compelling given its high valuation. Furthermore, despite a strong historical performance over the long term, recent returns have lagged behind the Sensex, with a year-to-date decline of 32.95% compared to a 5.62% gain in the index. Overall, Saraswati Commer is currently overvalued.