Is SW Investments overvalued or undervalued?

As of 13 June 2025, the valuation grade for SW Investments has moved from risky to very expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 7.82, an EV to EBIT of 7.74, and a PEG ratio of 0.10, which indicate that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, SW Investments has a lower PE ratio than Life Insurance, which stands at 12.28, and a significantly lower EV to EBITDA than Bajaj Finance at 19.46. This suggests that while SW Investments has some attractive ratios, its overall valuation is not justified when compared to industry standards. Additionally, despite a strong recent performance with a 78.25% return over the past year, the stock's current valuation does not align with its financial metrics, reinforcing the conclusion that it is overvalued.