Is Arman Financial overvalued or undervalued?

As of 4 September 2025, Arman Financial has moved from a valuation grade of very expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 239.10, an EV to EBIT of 9.50, and a ROCE of 18.11%.
In comparison to its peers, Arman Financial's PE ratio is notably higher than Bajaj Finance's 33.36 and Life Insurance's 11.41, which are classified as very expensive and very attractive, respectively. The company's EV to EBITDA ratio of 9.43 also stands out against the industry, suggesting a more favorable valuation relative to its earnings potential. While Arman Financial's recent stock performance has lagged behind the Sensex over the past year, its long-term returns over five and ten years have significantly outperformed the index, reinforcing the attractiveness of its current valuation.