Is Decillion Financ overvalued or undervalued?

As of 14 October 2025, the valuation grade for Decillion Financ has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 243.00, an EV to EBIT of 16.94, and a PEG ratio of 0.54. These ratios are starkly higher than its peers, such as Bajaj Finance, which has a PE ratio of 36.37, and Life Insurance, which boasts a much lower EV to EBITDA of 9.12.
In comparison to its industry peers, Decillion Financ's metrics suggest it is trading at a premium that is not justified by its financial performance, particularly with a ROE of only 0.56% and a negative ROCE of -0.08%. While the stock has outperformed the Sensex in the past year with a return of 74.19% compared to the Sensex's 0.07%, the current valuation does not align with its financial fundamentals, reinforcing the conclusion that Decillion Financ is overvalued.