Is Sundaram Fin.Hol overvalued or undervalued?

As of 2 June 2025, Sundaram Fin.Hol has moved from a fair valuation to an expensive one. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 21.10, while the EV to EBITDA ratio is significantly high at 75.10, indicating that investors are paying a premium for earnings relative to its peers. Additionally, the ROE is at 7.35%, which is modest compared to the industry standards.
In comparison to its peers, Sundaram Fin.Hol's valuation appears stretched; for instance, its PE ratio is higher than the average in the holding company sector, which typically ranges lower. The PEG ratio is notably at 0.00, suggesting that growth expectations are not reflected in the current price. Despite recent stock performance showing a 50.71% return over the past year compared to a 7.84% return of the Sensex, the current valuation metrics indicate that Sundaram Fin.Hol is overvalued in the market.