Is Franklin Leasing overvalued or undervalued?

As of 19 August 2025, Franklin Leasing's valuation grade has moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 20.97, an EV to EBIT of 7.62, and a Price to Book Value of 0.56. In comparison to its peers, Franklin Leasing's PE Ratio is notably higher than Life Insurance, which has a PE of 11.61, and is also higher than I R F C, which is at 24.84. Despite its recent stock performance showing a 26.7% decline year-to-date, it has outperformed the Sensex over the past year with a return of 11.68%. Overall, the combination of high valuation ratios and the peer comparison suggests that Franklin Leasing is not a favorable investment at this time.