Is DCM Financial overvalued or undervalued?

As of 17 October 2025, DCM Financial's valuation grade has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of -8.51, an EV to EBITDA of -46.43, and a ROCE of -16.60%. In comparison to its peers, Bajaj Finance is categorized as very expensive with a PE ratio of 38.21, while Life Insurance is viewed as very attractive with a PE of 11.49, highlighting the relative undervaluation of DCM Financial.
Despite its recent stock performance lagging behind the Sensex, with a year-to-date return of -32.27% compared to the Sensex's 7.44%, the attractive valuation metrics suggest potential for recovery. The negative book value and ratios indicate underlying challenges, yet the shift in valuation grade and comparison to peers suggest that DCM Financial may present a compelling investment opportunity at its current price of 5.31.