Is CitiPort Fin. overvalued or undervalued?

As of 3 November 2025, CitiPort Financial has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 96.10, a Price to Book Value of 3.07, and an EV to EBIT ratio of 9.60. In comparison, Bajaj Finance, another peer in the non-banking financial company sector, has a PE ratio of 37.15, while Life Insurance boasts a much lower PE of 11.94, highlighting the significant premium at which CitiPort is trading.
Despite its high valuation, CitiPort has shown strong stock performance, with a year-to-date return of 15.24% compared to the Sensex's 7.47%. However, the company's low ROCE of 3.85% and ROE of 3.19% raise concerns about its ability to generate adequate returns relative to its high valuation. Overall, the metrics suggest that CitiPort Financial is not only overvalued but also faces challenges in justifying its current price levels.