Is Stellar Capital overvalued or undervalued?

As of 4 June 2025, Stellar Capital's valuation grade has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued. Key ratios include a PE ratio of 14.98, an EV to EBIT of 14.96, and a Price to Book Value of 0.32, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Stellar Capital's PE ratio of 14.98 is notably higher than Life Insurance's PE of 12.54, which is classified as fair, while Bajaj Finance, also categorized as very expensive, has a much higher PE of 35.01. Additionally, Stellar's PEG ratio of 0.13 is significantly lower than that of its peers, indicating that despite its high valuation, growth expectations are not being met. Recent stock performance shows a 52.78% return over the past year, outperforming the Sensex's 7.59%, but this does not mitigate the overall overvaluation concern.