Is ARC Finance overvalued or undervalued?

As of 14 November 2025, ARC Finance has moved from a valuation grade of very expensive to risky. The company is currently assessed as overvalued, given its negative PE ratio of -30.37, an EV to EBITDA of -27.16, and a Price to Book Value of 0.66. These ratios indicate significant financial distress and a lack of profitability, which is concerning for potential investors.
In comparison to its peers, ARC Finance's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 34.62, and Life Insurance, which boasts a PE of 11.25. The disparity in these ratios highlights ARC Finance's unfavorable position within the industry. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -45.26%, compared to the Sensex's gain of 8.22%, further reinforcing the notion of overvaluation amidst a challenging financial landscape.