Is Fusion Finance overvalued or undervalued?

As of 22 August 2025, the valuation grade for Fusion Finance has moved from risky to expensive. The company is currently considered overvalued, with a PE ratio of -1.32, an EV to EBITDA ratio of -16.62, and a ROE of -77.96%. These ratios indicate significant financial distress and inefficiency compared to its peers.
In comparison to its industry, Fusion Finance's valuation metrics are starkly lower than those of Life Insurance, which has a PE ratio of 11.55 and an EV to EBITDA of 8.99, and Bajaj Finserv, with a PE ratio of 32.97. The significant disparity in these ratios suggests that Fusion Finance is not only overvalued but also struggling relative to its competitors. Additionally, the company's stock has underperformed the Sensex over the past year, with a return of -39.38% compared to the Sensex's 0.31%, reinforcing the notion of its overvaluation.