Is GCM Securit. overvalued or undervalued?

As of 10 October 2025, GCM Securit. has moved from a risky to a fair valuation grade. The company is currently assessed as undervalued, primarily due to its negative PE ratio of -6.64, which indicates that the stock is trading at a loss relative to its earnings. Additionally, the EV to EBIT ratio stands at 1.30, and the EV to EBITDA ratio is at 1.57, suggesting that the company is generating earnings before interest and taxes and before depreciation and amortization at a reasonable level compared to its enterprise value.
In comparison to its peers, GCM Securit. shows a stark contrast to Bajaj Finance, which is deemed very expensive with a PE ratio of 36.56, and Life Insurance, which is very attractive with a PE of 11.65. The company's return metrics are concerning, with a ROCE of 15.00% and a negative ROE of -15.46%. Furthermore, GCM Securit. has underperformed the Sensex significantly over various periods, particularly with a year-to-date return of -32.48% compared to the Sensex's 5.58%. This combination of factors reinforces the conclusion that GCM Securit. is currently undervalued in the market.