Is Esaar (India) overvalued or undervalued?

As of 17 October 2025, the valuation grade for Esaar (India) has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued based on its financial metrics, including a PE ratio of -1.49, an EV to EBITDA ratio of -2.94, and a ROE of -88.89%. These ratios suggest that the company is struggling to generate profits and is not performing well compared to its peers.
In comparison to its industry peers, Esaar's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance boasts a PE of 11.49 and an EV to EBITDA of 8.94, both indicating much stronger financial health. The stark contrast in these ratios further supports the conclusion that Esaar is overvalued. Despite its recent stock performance, which has outpaced the Sensex returns over various periods, the underlying financial metrics do not justify its current valuation.