Is Stellar Capital overvalued or undervalued?

As of 25 September 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, with a PE ratio of 15.43, an EV to EBIT of 15.41, and an EV to EBITDA also at 15.41. These ratios suggest that the stock may not be justified at its current price given its financial performance.
In comparison to its peers, Stellar Capital's valuation metrics stand out unfavorably; for instance, Bajaj Finance has a PE ratio of 36.17, while Life Insurance boasts a more attractive PE of 11.51. Additionally, Stellar's PEG ratio of 0.13 is low compared to the industry average, further reinforcing its overvaluation status. Despite recent positive stock performance against the Sensex, with a 1-week return of 5.46% compared to the Sensex's -2.23%, the overall valuation suggests that investors should approach with caution.