Is Arman Financial overvalued or undervalued?

As of 29 August 2025, Arman Financial has moved from a valuation grade of very expensive to attractive, indicating a significant shift in its market perception. The company is currently assessed as undervalued, particularly when considering its high PE ratio of 230.17, which is notably elevated compared to peers like Bajaj Finance at 31.3 and Life Insurance at 11.08. Additionally, Arman Financial's EV to EBITDA stands at 9.20, which is competitive against Bajaj Finserv's 12.49, further supporting the undervaluation narrative.
Despite recent stock performance showing a decline of 17.20% over the past month compared to a modest drop in the Sensex, the company's fundamentals, including a ROCE of 18.11% and a PEG ratio of 0.00, suggest that it has room for growth and improvement. Overall, the combination of these ratios and the favorable peer comparison reinforces the conclusion that Arman Financial is currently undervalued in the market.