Is ISF overvalued or undervalued?

As of 21 May 2025, the valuation grade for ISF has moved from risky to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of -9.98, an EV to EBIT of 14.02, and an EV to Sales of 7.83. Compared to peers, ISF's valuation stands out as significantly higher; for instance, Life Insurance has a PE ratio of 12.54 and an EV to EBITDA of 9.89, while Bajaj Finance is at 35.01 for PE and 19.51 for EV to EBITDA.
The company's financial performance is concerning, with a ROCE of -3.60% and a ROE of -0.07%. Additionally, ISF's stock has underperformed relative to the Sensex over various periods, notably a YTD decline of -36.42% compared to the Sensex's 5.66% gain, reinforcing the notion that the stock is overvalued at its current price of 1.03.