Is SIL Investments overvalued or undervalued?

As of 1 February 2024, SIL Investments has moved from an attractive to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 20.39, an EV to EBITDA of 12.85, and a PEG ratio of 1.71, which indicate that the stock is priced high relative to its earnings growth potential.
In comparison to its peers, SIL Investments' PE ratio is significantly higher than Life Insurance, which has a PE of 12.54 and is rated fair, while Bajaj Finance is also categorized as very expensive with a PE of 35.01. The company's recent stock performance has been mixed, showing a 1-year return of 28.15%, which outperforms the Sensex's 7.62% but has underperformed in the year-to-date comparison with a decline of 9.43% against the Sensex's 5.63%.