Is Goenka Business overvalued or undervalued?

As of 22 May 2025, the valuation grade for Goenka Business has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current financial ratios, including a PE ratio of -14.50, an EV to EBITDA of 0.50, and a ROE of -1.68%. These figures suggest that the company is struggling to generate profits relative to its market valuation.
In comparison to its peers, Goenka Business stands out with a notably lower PE ratio than Life Insurance, which has a PE of 12.54, and Bajaj Finance, which is at 35.01. The EV to EBITDA ratio of Goenka Business is also less favorable compared to Bajaj Finserv, which has an EV to EBITDA of 13.37. Additionally, while Goenka Business has shown a strong 1-year return of 74.62%, this is juxtaposed against a year-to-date decline of 41.34%, further reinforcing the notion that the stock is currently overvalued in the market.