Is Capfin India overvalued or undervalued?

As of 11 December 2024, Capfin India's valuation grade has moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios reveal a PE ratio of -58.68, an EV to EBITDA of -56.57, and a Price to Book Value of 8.96, which highlight its financial struggles and lack of profitability.
In comparison to its peers, Capfin India stands out with a notably negative PE ratio, while Life Insurance, categorized as fair, has a PE of 12.54, and Bajaj Finance, deemed very expensive, has a PE of 35.01. This stark contrast underscores the challenges Capfin India faces in the market. Additionally, the company's recent stock performance has outpaced the Sensex over the past year, with a return of 19.21% compared to the Sensex's 7.60%, suggesting some investor interest despite its overall overvaluation.