Is Arman Financial overvalued or undervalued?

As of 29 August 2025, Arman Financial's valuation grade has moved from very expensive to attractive, indicating a shift in perception towards the company's value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 230.17, an EV to EBITDA of 9.20, and a ROCE of 18.11%.
In comparison, Bajaj Finance is classified as very expensive with a PE ratio of 31.3, while Life Insurance is rated very attractive with a PE of 11.08. This stark contrast highlights Arman Financial's relative attractiveness in the market. Despite recent stock performance lagging behind the Sensex over the past year, with a decline of 20.58% compared to a 2.83% drop in the Sensex, the long-term perspective shows a significant gain of 130.56% over five years, reinforcing the potential for recovery and growth.