Is Fino Payments overvalued or undervalued?

As of 7 November 2025, Fino Payments' valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued based on its financial metrics. The PE ratio stands at 28.93, while the Price to Book Value is 3.08, and the ROE is 10.65%. These ratios suggest that while the company has potential, it may not be significantly undervalued.
In comparison to its peers, Bajaj Finance has a significantly higher PE ratio of 38.09, indicating it is considered very expensive, while Life Insurance is seen as very attractive with a PE of 11.44. Fino Payments' EV to EBITDA ratio of -1.50 is notably concerning, as it indicates negative earnings before interest, taxes, depreciation, and amortization, which could be a red flag for investors. Additionally, the company's recent stock performance has underperformed against the Sensex, with a year-to-date return of -12.13% compared to the Sensex's 6.50%. This further reinforces the view that Fino Payments is currently fairly valued in the market.