Is Fusion Finance overvalued or undervalued?

Aug 24 2025 08:07 AM IST
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As of August 22, 2025, Fusion Finance is considered overvalued with a PE ratio of -1.32 and an EV to EBITDA of -16.62, reflecting significant financial distress and a 1-year return of -39.38%, especially when compared to industry peers like Life Insurance and Bajaj Finserv.
As of 22 August 2025, the valuation grade for Fusion Finance has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company is currently overvalued, with a PE ratio of -1.32, an EV to EBITDA of -16.62, and a ROE of -77.96%. These ratios highlight significant financial distress, particularly the negative earnings metrics, which are concerning for potential investors.

In comparison to its peers, Fusion Finance's valuation stands out unfavorably. For instance, Life Insurance boasts a PE ratio of 11.55 and an EV to EBITDA of 8.99, while Bajaj Finserv is at 32.97 and 12.65, respectively. This stark contrast underscores Fusion Finance's overvaluation in the context of its industry. Additionally, the company's recent stock performance has been dismal, with a 1-year return of -39.38%, significantly underperforming the Sensex's modest gain of 0.31%.
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