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 deterioration in its valuation outlook. The company is currently assessed as overvalued, with a PE ratio of -79.26, an EV to EBITDA of -14.44, and a Price to Book Value of 2.55. These ratios suggest that the company's financial performance is not only poor but also that its market valuation is excessively high compared to its earnings and assets.
In comparison to its peers, Dalal Street Inv stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance boasts a PE of 11.49 and an EV to EBITDA of 8.94, both indicating a healthier valuation. The company's recent stock performance has been mixed, with a 1-week return of 10.35% compared to the Sensex's 1.76%, but a concerning 1-year return of -27.6% against the Sensex's 3.64%. This further reinforces the notion that Dalal Street Inv is overvalued in the current market environment.