Is Ashika Credit overvalued or undervalued?

As of 4 September 2025, the valuation grade for Ashika Credit has moved from risky to very expensive. This indicates that the company is currently overvalued. Key ratios highlight this situation, with a PE ratio of -100.02, an EV to EBITDA of -113.46, and a Price to Book Value of 3.82. These figures suggest that the company's valuation metrics are significantly unfavorable compared to its peers.
In comparison to notable peers, Bajaj Finance has a PE ratio of 33.36 and an EV to EBITDA of 18.56, while Life Insurance boasts an EV to EBITDA of 8.87, both indicating a more favorable valuation. The stark contrast in these ratios reinforces the conclusion that Ashika Credit is overvalued. Additionally, despite a strong 3-year return of 942.52%, the company's year-to-date performance shows a decline of 54.27%, further emphasizing the disconnect between its current valuation and market performance.