Is Shree Securities overvalued or undervalued?

Aug 28 2025 08:03 AM IST
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As of August 26, 2025, Shree Securities is considered overvalued with a PE ratio of 23.14, significantly higher than its peers, and has underperformed with a year-to-date return of -19.44% compared to the Sensex's 3.39% gain.
As of 26 August 2025, the valuation grade for Shree Securities has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 23.14, an EV to EBIT of 22.15, and a ROE of 7.05%.

In comparison to its peers, Shree Securities' PE ratio is notably higher than that of Life Insurance, which stands at 11.53, and even higher than Bajaj Finance at 31.26. This suggests that Shree Securities is priced at a premium relative to its industry counterparts, further reinforcing the overvaluation assessment. Additionally, while Shree Securities has underperformed with a year-to-date return of -19.44%, the Sensex has gained 3.39% in the same period, highlighting a divergence in performance that supports the conclusion of overvaluation.
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