Is Fusion Finance overvalued or undervalued?

As of 4 November 2025, the valuation grade for Fusion Finance has moved from expensive to risky. The company is currently assessed as overvalued based on its negative PE ratio of -1.81, a significantly high EV to EBITDA ratio of -45.81, and a ROE of -60.75%. These metrics indicate severe financial distress and an inability to generate positive earnings, which is concerning for potential investors.
In comparison to its peers, Fusion Finance's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 37.67 and an EV to EBITDA of 20.06, while Life Insurance boasts a PE of 11.76 and an EV to EBITDA of 9.18, both reflecting much healthier financial positions. Additionally, Fusion Finance's stock has underperformed relative to the Sensex, with a 1-year return of -15.13% compared to the Sensex's 5.94%, further emphasizing its overvaluation in the current market context.