Five-Star Business Finance Adjusts Valuation Amidst Declining Stock Performance

Five-Star Business Finance, a small-cap player in the Non-Banking Financial Company (NBFC) sector, has recently undergone a valuation adjustment. The company currently exhibits a price-to-earnings (PE) ratio of 15.01 and a price-to-book value of 2.59. Its enterprise value to EBITDA stands at 10.23, while the enterprise value to EBIT is recorded at 10.39. The PEG ratio is noted at 0.77, and the dividend yield is 0.36%.
In terms of return on capital employed (ROCE) and return on equity (ROE), Five-Star Business Finance shows figures of 17.23% and 17.25%, respectively. When compared to its peers, Five-Star Business Finance maintains a relatively favorable position, particularly in terms of its PE ratio, which is significantly lower than several competitors categorized as very expensive.

However, the company has faced challenges recently, with a notable decline in stock performance over various periods, including a year-to-date return of -28%. This performance contrasts with the broader market, as indicated by the Sensex's positive return of 2.48% during the same timeframe.