Is Ujjivan Small overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ujjivan Small has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics, with a PE ratio of 22.65, a Price to Book Value of 1.58, and a PEG ratio of 0.00. These figures suggest that the stock price is not justified by its earnings growth potential.
In comparison to its peers, Ujjivan Small's PE ratio is higher than that of HDFC Bank at 22.22 and ICICI Bank at 20.98, both of which are considered expensive and fair, respectively. Additionally, Ujjivan's return on equity (ROE) stands at 6.96%, which is relatively low compared to the industry standards. While Ujjivan Small has outperformed the Sensex in terms of year-to-date returns at 44.36% versus 7.44%, the current valuation metrics suggest that investors should approach this stock with caution given its very expensive classification.