Is Decillion Financ overvalued or undervalued?

As of 15 October 2025, the valuation grade for Decillion Financ has moved from very expensive to expensive. The company is currently considered overvalued, primarily due to its high PE ratio of 243.00, which significantly exceeds that of its peers. For comparison, Bajaj Finance has a PE ratio of 37.84, while Life Insurance boasts a much lower PE of 11.69, indicating that Decillion Financ's valuation is not justified relative to its earnings potential.
In addition to the elevated PE ratio, Decillion's EV to EBIT stands at 16.94, which is also higher than the industry average, while its PEG ratio of 0.54 suggests that the stock may be undervalued based on growth expectations. However, the negative ROCE of -0.08% and a low ROE of 0.56% further highlight the company's struggles in generating returns. Despite a strong recent performance with a 1-year return of 67.64% compared to the Sensex's 0.96%, the overall valuation metrics indicate that Decillion Financ remains overvalued in the current market environment.