Is UTI AMC overvalued or undervalued?

As of 21 July 2025, UTI AMC's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 25.76, an EV to EBITDA of 16.65, and a ROCE of 25.78%. In comparison to its peers, Bajaj Finance has a significantly higher PE ratio of 35.44, while Life Insurance is more attractively valued with a PE of 12.15.
Given these metrics, UTI AMC appears to be overvalued in the current market context. The company's recent stock performance has outpaced the Sensex, with a 1-year return of 49.22% compared to the Sensex's 1.98%, which may reflect investor optimism despite the high valuation ratios.