Is Comfort Fincap overvalued or undervalued?

As of 9 October 2025, Comfort Fincap's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued based on its current metrics, with a PE ratio of 12.75, a price to book value of 0.86, and an EV to EBITDA ratio of 8.48. These figures suggest that the stock is trading at a discount compared to its earnings and asset values.
In comparison to its peers, Comfort Fincap's valuation stands out as more favorable, particularly when juxtaposed with Bajaj Finance, which has a PE ratio of 36.57, and Bajaj Finserv, with a PE of 33.8. Additionally, Life Insurance, considered very attractive, has a PE ratio of 11.62, further emphasizing Comfort Fincap's relative undervaluation in the market. Despite recent underperformance against the Sensex, with a year-to-date return of -18.49% compared to the Sensex's 5.16%, the fundamental ratios suggest that Comfort Fincap presents a compelling investment opportunity at its current price of 8.51.