Is Capital Trust overvalued or undervalued?

Sep 11 2025 08:03 AM IST
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As of September 10, 2025, Capital Trust is considered overvalued with a PE ratio of -12.64 and an EV to EBITDA of 22.05, significantly underperforming compared to peers like Bajaj Finance and Life Insurance, and has a year-to-date return of -59.13% against the Sensex's 4.21%.
As of 10 September 2025, Capital Trust's valuation grade has moved from fair to expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of -12.64, an EV to EBITDA of 22.05, and a Price to Book Value of 1.17. These ratios suggest that the company's financial performance is not only underwhelming but also does not justify its current market price.

When compared to peers, Capital Trust's metrics stand out unfavorably; for instance, Bajaj Finance has a PE ratio of 34.56, while Life Insurance boasts a much more attractive PE of 11.4. This stark contrast highlights Capital Trust's relative overvaluation within its sector. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -59.13%, significantly lagging behind the Sensex's positive return of 4.21% during the same period.
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