Is Classic Leasing overvalued or undervalued?

As of 29 August 2025, the valuation grade for Classic Leasing has moved from risky to attractive, indicating a significant improvement in its perceived investment quality. The company appears to be undervalued, particularly when considering its price-to-earnings (PE) ratio of 10.80, which is notably lower than that of its peers. For example, Bajaj Finance has a PE ratio of 31.3, while Life Insurance stands at 11.08, suggesting that Classic Leasing offers a more favorable valuation relative to these competitors.
Additionally, Classic Leasing's PEG ratio of 0.08 highlights its potential for growth at a low price, further supporting the undervaluation thesis. The company's EV to EBITDA ratio of 20.71 is on par with its peers, but its negative price-to-book value of -2.69 raises some concerns about asset valuations. Despite this, the recent stock performance has been impressive, with a one-year return of 155.68%, significantly outperforming the Sensex's decline of 2.83% in the same period. Overall, Classic Leasing is positioned as an attractive investment opportunity within the Non-Banking Financial Company sector.