Is ARC Finance overvalued or undervalued?

Nov 16 2025 08:10 AM IST
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As of November 14, 2025, ARC Finance is considered overvalued and risky, with a PE ratio of -30.37 and a year-to-date return of -45.26%, significantly underperforming compared to its peers and the Sensex.
As of 14 November 2025, the valuation grade for ARC Finance has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios highlight this concern, with a PE ratio of -30.37, an EV to EBITDA of -27.16, and a Price to Book Value of 0.66.

In comparison to its peers, ARC Finance's metrics starkly contrast with Bajaj Finance, which has a PE ratio of 34.62, and Life Insurance, boasting a PE of 11.25. These comparisons underscore the relative overvaluation of ARC Finance within the Non-Banking Financial Company (NBFC) sector. Furthermore, the company's year-to-date return of -45.26% starkly contrasts with the Sensex's positive return of 8.22%, reinforcing the notion that ARC Finance is not only underperforming but also overvalued in the current market landscape.
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