Is Dalal Street Inv overvalued or undervalued?

As of 19 September 2025, the valuation grade for Dalal Street Inv has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued based on its financial ratios. Key metrics include a PE ratio of -12.75, an EV to EBITDA of -14.51, and a Price to Book Value of 2.57, which suggest that the company's valuation does not align with its earnings and asset values.
In comparison to its peers, Dalal Street Inv's valuation stands out negatively; for instance, Bajaj Finance has a PE ratio of 35.51, while Life Insurance boasts a much more attractive PE of 11.64. The negative earnings ratios and low return on equity (ROE) of -3.22% further reinforce the notion that Dalal Street Inv is overvalued. Additionally, the company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it has declined by 22.99% compared to a slight decrease of 0.67% in the Sensex.