Is Stellar Capital overvalued or undervalued?

As of 26 August 2025, Stellar Capital's valuation grade has moved from very expensive to fair, indicating a significant adjustment in its market perception. The company is currently fairly valued, with a PE ratio of 14.98, an EV to EBITDA ratio of 14.96, and a PEG ratio of 0.13, suggesting that it may be undervalued relative to its growth prospects.
In comparison to its peers, Stellar Capital's valuation metrics are more favorable than those of Bajaj Finance, which has a PE ratio of 31.26, and Bajaj Finserv, with a PE ratio of 32.28, both categorized as very expensive. Additionally, Life Insurance stands out with a more attractive PE ratio of 11.53, reinforcing the notion that Stellar Capital is positioned competitively within its sector. Despite a year-to-date return of -18.7%, Stellar Capital has outperformed the Sensex over the past year, which returned -1.12%, further supporting its fair valuation status.