Is SW Investments overvalued or undervalued?

As of 13 June 2025, the valuation grade for SW Investments has moved from risky to very expensive. This indicates that the company is currently overvalued. Key ratios include a PE ratio of 7.82, an EV to EBITDA ratio of 7.74, and a PEG ratio of 0.10, which suggest that despite low valuation multiples, the overall valuation is not justified given the company's performance metrics.
In comparison to peers, SW Investments' PE ratio of 7.82 is significantly lower than Life Insurance's PE of 12.28, which is considered fair, and much lower than Bajaj Finance's PE of 34.86, categorized as very expensive. Additionally, SW Investments' ROE stands at a mere 1.04%, indicating weak profitability relative to its equity base. Notably, while the stock has outperformed the Sensex over the past year with a return of 78.25% compared to the Sensex's 5.61%, the current valuation suggests that investors may need to exercise caution.