Is DCM Financial overvalued or undervalued?

As of 23 October 2025, DCM Financial's valuation grade has moved from attractive to risky, indicating a significant deterioration in its financial standing. The company is currently overvalued, reflected by its troubling headline ratios, including a PE ratio of -8.71, an EV to EBIT of -39.76, and an EV to EBITDA of -46.59. These negative values suggest that the company is struggling to generate profits and is facing substantial operational challenges.
In comparison to its peers, DCM Financial stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 39.07, while Life Insurance boasts a PE of 11.68, both indicating a much healthier valuation. The stark contrast in these ratios highlights the risks associated with investing in DCM Financial at its current price of 5.43, especially as it has underperformed against the Sensex in various time frames, including a year-to-date decline of 30.74% compared to the Sensex's gain of 8.21%.