Is 5Paisa Capital overvalued or undervalued?

As of 28 July 2025, the valuation grade for 5Paisa Capital has moved from attractive to very attractive, indicating a stronger outlook for the company. Based on the analysis, 5Paisa Capital appears to be undervalued. The company has a PE ratio of 19.69, an EV to EBITDA ratio of 0.49, and a ROE of 11.30%, which are compelling metrics in the context of its peers.
In comparison to its industry peers, 5Paisa Capital's valuation stands out; for instance, Life Insurance has a PE ratio of 11.66 while Bajaj Finance is considered very expensive with a PE of 31.4. Additionally, the PEG ratio for 5Paisa is notably low at 0.00, suggesting that the company is priced attractively relative to its growth prospects. Despite recent underperformance against the Sensex, with a year-to-date return of -20% compared to the Sensex's 3.52%, the valuation metrics indicate that 5Paisa Capital presents a favorable investment opportunity at its current price of 376.30.