Is Shalibhadra Fin. overvalued or undervalued?

As of 14 October 2025, the valuation grade for Shalibhadra Fin. has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 22.04, an EV to EBIT of 15.48, and a Price to Book Value of 2.45, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Shalibhadra Fin. has a PE ratio lower than Bajaj Finance, which stands at 36.37, but significantly higher than Life Insurance's attractive PE of 11.7. The PEG ratio of 1.06 indicates that the stock may not be justified at its current price relative to its growth prospects. Additionally, while the stock has outperformed the Sensex over a 3-year and 5-year period, it has underperformed in the short term, with a year-to-date return of -30.46% compared to the Sensex's 4.98%.