Is Stellar Capital overvalued or undervalued?
As of August 28, 2025, Stellar Capital is considered overvalued with a valuation grade of very expensive, reflected in its PE ratio of 14.98 and underperformance compared to peers and the Sensex, despite a positive return of 12.15% over the past year.
As of 28 August 2025, Stellar Capital's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios reveal a PE ratio of 14.98, an EV to EBIT of 14.96, and a Price to Book Value of 0.32, which are not compelling when compared to its peers.In comparison to similar companies, Life Insurance boasts a more attractive PE ratio of 11.27 and an EV to EBITDA of 8.74, while Bajaj Finance is categorized as very expensive with a PE ratio of 31.28. This suggests that Stellar Capital's valuation does not align favorably with its peers in the Non-Banking Financial Company (NBFC) sector. Additionally, while Stellar Capital has shown a positive return over the past year at 12.15%, it has underperformed against the Sensex, which has returned 2.48% year-to-date.
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