Is Comfort Fincap overvalued or undervalued?

As of 25 June 2025, Comfort Fincap's valuation grade has moved from fair to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, particularly when considering its PE ratio of 15.28, a Price to Book Value of 0.90, and an EV to EBIT of 8.56. These ratios suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to peers, Comfort Fincap's valuation stands out against Life Insurance, which has a PE ratio of 12.45, and Bajaj Finance, which is deemed very expensive with a PE ratio of 34.67. The PEG ratio for Comfort Fincap is notably low at 0.00, further reinforcing its undervalued status. Despite recent underperformance relative to the Sensex, particularly with a year-to-date return of -14.85% versus the Sensex's 5.91%, the company's fundamentals suggest a potential for recovery and growth.