Is Franklin Leasing overvalued or undervalued?

As of 29 August 2025, the valuation grade for Franklin Leasing has moved from very expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 17.68, an EV to EBIT of 4.32, and a Price to Book Value of 0.47, which suggest that the stock is reasonably priced compared to its earnings and asset value.
When compared to peers, Franklin Leasing's valuation stands out against Bajaj Finance, which is very expensive with a PE Ratio of 31.3, and Life Insurance, which is very attractive with a PE Ratio of 11.08. This comparison reinforces the notion that Franklin Leasing is not overvalued in its sector. Additionally, while the stock has underperformed the Sensex year-to-date with a return of -38.22% compared to the Sensex's 2.14%, its current valuation appears justified given the overall market conditions and peer performance.