Is Vedant Asset overvalued or undervalued?

As of 4 September 2025, the valuation grade for Vedant Asset has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 10.77, an EV to EBITDA ratio of 7.17, and a ROE of 4.05%. In comparison to its peers, Bajaj Finance has a much higher PE ratio of 33.36, while Life Insurance, which is rated very attractive, has a PE of 11.41, suggesting that Vedant Asset's valuation does not align favorably within its industry.
The company's financial metrics highlight notable concerns, particularly with a negative ROCE of -4.37% and a PEG ratio of 0.00, indicating a lack of growth potential. Additionally, Vedant Asset has underperformed significantly against the Sensex, with a year-to-date return of -55.5% compared to the Sensex's positive return of 3.30%. This further reinforces the conclusion that Vedant Asset is overvalued in the current market environment.