Is Cindrella Fin. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cindrella Fin. has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios highlight this assessment: the PE ratio stands at 53.94, the EV to EBIT ratio is 4.55, and the ROE is only 3.04%. In comparison, Bajaj Finance, another peer in the same industry, has a PE ratio of 38.21, while Life Insurance boasts a much lower PE of 11.49, further emphasizing Cindrella Fin.'s inflated valuation.
The company's financial metrics suggest a concerning outlook, with a PEG ratio of 0.00 and a ROCE of just 1.91%. These figures, combined with the significant gap between Cindrella Fin. and its peers, reinforce the notion that it is overvalued. Notably, while the stock has outperformed the Sensex in the short term, with a 1-week return of 3.73% compared to the Sensex's 1.76%, its year-to-date performance shows a decline of 21.99%, indicating potential long-term challenges ahead.