Is Dalal Street Inv overvalued or undervalued?

As of 17 October 2025, the valuation grade for Dalal Street Inv has moved from risky to very expensive. This indicates a significant shift in the perception of the company's valuation, suggesting that it is currently overvalued. The company exhibits a PE ratio of -79.26, an EV to EBIT of -14.44, and an EV to Sales ratio of 14.44, all of which highlight its unfavorable financial position compared to its peers.
In comparison to notable competitors, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance shows a more attractive valuation with a PE of 11.49 and an EV to EBITDA of 8.94. These figures reinforce the notion that Dalal Street Inv is overvalued in the current market context. Additionally, while the stock has outperformed the Sensex over the past week with a return of 10.35% compared to the Sensex's 1.76%, its longer-term performance remains concerning, particularly with a 1-year return of -27.6% against the Sensex's 3.64%.