Is Esaar (India) overvalued or undervalued?

As of 29 August 2025, the valuation grade for Esaar (India) has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued. Key ratios include a PE Ratio of -1.60, an EV to EBITDA of -3.02, and a ROE of -88.89%, all of which suggest underlying financial distress.
In comparison to its peers, Esaar's valuation metrics are starkly unfavorable; for instance, Bajaj Finance has a PE Ratio of 31.3, while Life Insurance boasts an EV to EBITDA of 8.57, highlighting the disparity in valuation. Furthermore, Esaar's recent stock performance has outpaced the Sensex, with a year-to-date return of 171.50% compared to the Sensex's 2.14%, but this does not mitigate its overvaluation status.