Is Capital Trust overvalued or undervalued?

As of 4 September 2025, the valuation grade for Capital Trust has moved from expensive to fair. The company appears to be undervalued based on its current metrics. Key ratios include a PE ratio of -12.64, an EV to EBITDA of 22.06, and a Price to Book Value of 1.17.
In comparison to peers, Bajaj Finance is classified as very expensive with a PE ratio of 33.36, while Life Insurance is very attractive with a PE ratio of 11.41. Notably, Capital Trust's negative ROCE of -33.49% and ROE of -9.24% indicate significant challenges, yet its valuation suggests potential for recovery. The company's stock has underperformed relative to the Sensex, with a year-to-date return of -59.11% compared to the Sensex's 3.30%, reinforcing the notion of undervaluation.