Is SG Finserve overvalued or undervalued?

As of 23 June 2025, the valuation grade for SG Finserve has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 33.14, an EV to EBITDA ratio of 28.82, and a PEG ratio of 0.00, which suggests that the stock may be underpriced relative to its growth potential.
In comparison to peers, SG Finserve's PE ratio is significantly higher than Life Insurance's fair valuation PE of 12.3, while Bajaj Finance is categorized as very expensive with a PE of 34.19. Notably, SG Finserve's EV to EBITDA ratio is lower than Bajaj Finserv's 13.39, which further supports the argument for its undervaluation. Despite recent underperformance compared to the Sensex over the past year, the long-term returns of 309.76% over three years highlight its potential for growth.