Is Decillion Financ overvalued or undervalued?

As of 2 June 2025, the valuation grade for Decillion Financ has moved from risky to very expensive. This indicates that the company is currently overvalued. Key ratios include a PE ratio of 14.80, an EV to EBIT of 15.17, and a ROE of 0.48%. Compared to peers, Life Insurance has a fair PE ratio of 12.54, while Bajaj Finance is categorized as very expensive with a PE of 35.01.
The valuation metrics suggest that Decillion Financ is not only overvalued but also significantly higher than some of its peers in the industry. The company's recent stock performance has been underwhelming, with a 1-week return of -8.66% compared to a Sensex return of 1.41%, further reinforcing the notion of overvaluation.