Is Ujjivan Small overvalued or undervalued?

As of 12 September 2025, the valuation grade for Ujjivan Small has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 17.10, a price to book value of 1.51, and a ROE of 8.81%.
In comparison with peers, HDFC Bank has a PE ratio of 21.41, while ICICI Bank stands at 20.69, both reflecting a higher valuation than Ujjivan Small. The company's recent performance has outpaced the Sensex, with a year-to-date return of 37.99% compared to the Sensex's 4.82%, reinforcing the notion that while the stock may be overvalued, it has shown strong relative performance.