Is Arman Financial overvalued or undervalued?

As of 29 August 2025, the valuation grade for Arman Financial has moved from very expensive to attractive. This indicates a significant shift in perception regarding the company's valuation. Based on the analysis, Arman Financial appears to be undervalued, especially when considering its current PE ratio of 230.17, which, while high, is offset by a PEG ratio of 0.00, suggesting potential for growth relative to its price.
In comparison to peers, Arman Financial's EV to EBITDA stands at 9.20, while Bajaj Finance is at 17.84 and Life Insurance at 8.57, highlighting a more favorable valuation for Arman despite its high PE ratio. Additionally, the company's ROCE is 18.11%, which is competitive within the industry. Notably, while Arman Financial has faced a decline in stock price recently, its year-to-date return of 9.24% outperforms the Sensex's 2.14%, reinforcing the narrative of an attractive valuation amidst market fluctuations.