Is GSB Finance overvalued or undervalued?

Oct 24 2025 08:10 AM IST
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As of October 23, 2025, GSB Finance is considered undervalued with a PE ratio of -137.65 and an EV to EBIT of -21.90, contrasting sharply with peers like Bajaj Finance and Life Insurance, despite a strong one-year stock return of 120.34% and a year-to-date decline of 19.95%.
As of 23 October 2025, GSB Finance's valuation grade has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently undervalued, with a PE ratio of -137.65, an EV to EBIT of -21.90, and a Price to Book Value of 0.16. These ratios suggest that the company is trading at a substantial discount compared to its earnings and asset value.

In comparison to its peers, GSB Finance's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, with a PE ratio of 11.68. The negative ratios for GSB Finance highlight its current financial distress relative to the industry. Despite a strong one-year stock return of 120.34%, the overall trend indicates volatility, especially with a year-to-date decline of 19.95%. This combination of factors reinforces the conclusion that GSB Finance is undervalued in the current market landscape.
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