Is SBI Cards overvalued or undervalued?

As of 2 January 2025, the valuation grade for SBI Cards & Payment Services Ltd. has moved from expensive to very expensive. The company is currently overvalued based on its financial ratios, which include a PE ratio of 49.31, a Price to Book Value of 7.22, and an EV to EBITDA ratio of 25.45. These figures indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, SBI Cards stands out with a PE ratio of 49.31, while other companies in the sector may have lower ratios, suggesting that SBI Cards is priced higher than its competitors. Notably, the PEG ratio is 0.00, which further emphasizes the lack of growth relative to its current price. Additionally, while the stock has outperformed the Sensex in the short term, with a year-to-date return of 51.74% compared to the Sensex's 5.58%, the long-term performance shows a stark contrast, with a 5-year return of 64.8% against the Sensex's 142.96%. This disparity reinforces the notion that the stock may be overvalued at its current price.