Is Charter. Capital overvalued or undervalued?

As of 24 October 2025, Charter Capital's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 17.64, a price-to-book value of 0.67, and a negative EV to EBIT of -6.92. These ratios suggest that while the company has a reasonable earnings multiple, its negative enterprise value metrics indicate potential challenges in profitability or capital structure.
In comparison to its peers, Charter Capital's valuation stands out against Bajaj Finance, which is considered very expensive with a PE ratio of 38.9, and Life Insurance, which is very attractive with a PE ratio of 11.55. The peer analysis highlights that Charter Capital's valuation is more aligned with its industry peers, reinforcing the notion of it being fairly valued. Notably, the company's stock has outperformed the Sensex significantly over the past year, with a return of 49.46% compared to the Sensex's 5.18%, further supporting the positive valuation outlook.