Is Viji Finance overvalued or undervalued?

As of 2 May 2023, Viji Finance's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 32.35, an EV to EBIT of 44.16, and a Price to Book Value of 2.66. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Viji Finance's PE ratio is notably higher than Life Insurance, which has a PE of 12.54, and IRFC, with a PE of 29.42, both of which are categorized as fair. Additionally, Bajaj Finance, another peer, is also classified as very expensive with a PE of 35.01. The recent stock performance shows that while Viji Finance has outperformed the Sensex in the short term, it has significantly underperformed over the longer term, particularly with a year-to-date return of -28.70% compared to the Sensex's 5.58%.