Is Vedant Asset overvalued or undervalued?

As of 2 June 2025, the valuation grade for Vedant Asset has moved from does not qualify to very expensive. This indicates a significant shift in perception regarding the company's valuation. Based on the analysis, Vedant Asset is currently overvalued. The company's PE ratio stands at 12.98, while its EV to EBITDA ratio is 9.38, and it has a negative ROCE of -4.37%.
In comparison to its peers, Vedant Asset's PE ratio is higher than Life Insurance, which is fairly valued at 12.54, and significantly lower than Bajaj Finance Ltd., which is very expensive at 35.01. Additionally, Vedant's PEG ratio of 0.00 suggests that it is not generating growth relative to its price, further supporting the overvaluation conclusion. Notably, Vedant Asset has underperformed the Sensex with a year-to-date return of -43.7% compared to the Sensex's 5.56%, reinforcing concerns about its current valuation.