Is Explicit Finance overvalued or undervalued?

As of 29 August 2025, the valuation grade for Explicit Finance has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 7.66, while the EV to EBIT and EV to EBITDA both reflect a value of 6.47. Additionally, the PEG ratio is notably low at 0.01, suggesting that growth expectations may not justify the current price.
In comparison with peers, Explicit Finance's valuation appears less favorable. Bajaj Finance is categorized as very expensive with a PE ratio of 31.3, while Life Insurance is deemed very attractive with a PE of 11.08. This highlights a significant disparity in valuation among competitors in the diversified commercial services industry. Despite recent stock performance showing a 21.26% return over the past week compared to a -1.84% decline in the Sensex, the overall valuation suggests that Explicit Finance may not sustain its current price levels.