Is Guj. Lease Fin. overvalued or undervalued?

As of 23 October 2025, the valuation grade for Guj. Lease Fin. has moved from attractive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued, particularly when considering its PE ratio of 336.36, a negative Price to Book Value of -4.97, and an EV to EBIT of -29.75. These ratios suggest that the company's valuation metrics are not only high but also reflect underlying financial instability.
In comparison to its peers, Guj. Lease Fin. stands out unfavorably. For instance, Bajaj Finance, categorized as very expensive, has a PE ratio of 39.07, while Life Insurance, deemed very attractive, has a PE of 11.68. This stark contrast highlights the overvaluation of Guj. Lease Fin. Additionally, while the stock has shown strong short-term performance with a 1-month return of 31.91% compared to the Sensex's 2.99%, its longer-term performance has been lackluster, with a 1-year return of -12.06% against the Sensex's 5.59%. Overall, the company's financial metrics and peer comparisons strongly suggest it is overvalued at its current price of 7.44.