Is Sundaram Fin.Hol overvalued or undervalued?

As of 1 July 2025, the valuation grade for Sundaram Fin.Hol has moved from very expensive to expensive. Based on the current analysis, the company appears to be overvalued. Key ratios include a PE ratio of 27.14, an EV to EBITDA of 96.59, and a ROE of 7.35%.
In comparison to peers, Life Insurance is fairly valued with a PE of 12.71 and Bajaj Finserv is also expensive with a PE of 36.92. The significant disparity in valuation metrics highlights Sundaram Fin.Hol's elevated position relative to its peers. Additionally, the company has outperformed the Sensex significantly over the past year, with a stock return of 84.03% compared to the Sensex's 5.80%, reinforcing the notion of its overvaluation.