Is Saraswati Commer overvalued or undervalued?

As of 14 November 2025, the valuation grade for Saraswati Commer has moved from expensive to very expensive. The company is currently overvalued based on its high valuation ratios, including a PE ratio of 70.75, an EV to EBIT of 51.38, and a Price to Book Value of 1.42. These figures indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Saraswati Commer's valuation appears excessive, especially when looking at Bajaj Finance with a PE ratio of 34.62 and EV to EBITDA of 19.53, and Life Insurance, which has a PE ratio of 11.25 and EV to EBITDA of 9.29. The company's recent stock performance has been mixed, with a notable 1-week return of 12.11% compared to the Sensex's 1.62%, but it has underperformed over the longer term, with a year-to-date decline of 29.10% against the Sensex's gain of 8.22%. Overall, the high valuation ratios and comparison with peers suggest that Saraswati Commer is overvalued.