Is Franklin Leasing overvalued or undervalued?

As of 29 August 2025, the valuation grade for Franklin Leasing has moved from very expensive to fair. This indicates a shift in perception regarding its value, suggesting that the company is now fairly valued. Key ratios include a PE Ratio of 17.68, an EV to EBIT of 4.32, and an EV to Sales of 0.32, which reflect a more attractive valuation compared to prior assessments.
In comparison to its peers, Franklin Leasing's PE Ratio of 17.68 is significantly lower than Bajaj Finance's 31.3, which is categorized as very expensive, and Life Insurance's 11.08, which is considered very attractive. This positions Franklin Leasing in a competitive light within the Non-Banking Financial Company (NBFC) sector. Despite recent stock performance showing a decline of 38.22% year-to-date against a 2.14% rise in the Sensex, the current valuation suggests that Franklin Leasing may be a more appealing investment opportunity relative to its peers.