Is Classic Leasing overvalued or undervalued?

As of 29 August 2025, Classic Leasing's valuation grade has moved from risky to attractive, indicating a significant improvement in its perceived investment quality. The company is currently assessed as undervalued. Key financial ratios include a PE ratio of 10.80, an EV to EBIT ratio of 20.71, and a PEG ratio of 0.08, all suggesting that the stock is priced favorably compared to its earnings growth potential.
In comparison to its peers, Classic Leasing's PE ratio of 10.80 is notably lower than Bajaj Finance's 31.3, which is categorized as very expensive, and Life Insurance's 11.08, which is considered very attractive. The company's strong performance is further highlighted by its impressive stock return of 155.68% over the past year, significantly outperforming the Sensex's decline of 2.83% during the same period. This combination of favorable ratios and peer comparisons reinforces the conclusion that Classic Leasing is undervalued in the current market.