Is Guj. State Fin. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Guj. State Fin. has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when looking at its headline ratios, which include a PE ratio of -0.90, an EV to EBITDA ratio of -227.24, and a PEG ratio of 0.00. These figures suggest that the company's earnings and cash flow metrics are extremely low or negative, which is atypical for a finance company.
In comparison to its peers, Guj. State Fin. stands out with its attractive valuation despite having a negative PE ratio, while Bajaj Finance is categorized as very expensive with a PE ratio of 38.21, and Life Insurance is considered very attractive with a PE ratio of 11.49. The stark contrast in valuation metrics highlights the potential for Guj. State Fin. to be undervalued relative to its peers. Additionally, while the company has underperformed against the Sensex in the short term, its long-term performance over 5 years shows a remarkable return of 514.29%, reinforcing the notion that it may be a compelling investment opportunity at its current price.