Is Jayabharat Cred. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Jayabharat Cred. has moved from risky to very attractive. This indicates a significant improvement in its perceived value, suggesting that the company is currently undervalued. Key ratios highlight this situation, with a PE ratio of -4.93, an EV to EBIT of -65.37, and a PEG ratio of 0.00, all of which reflect negative performance metrics that may be driving the stock price down.
In comparison to its peers, Jayabharat Cred. stands out with its very attractive valuation despite the negative ratios. For instance, Life Insurance has a PE ratio of 11.55 and an EV to EBITDA of 8.99, while Bajaj Finance is considered very expensive with a PE ratio of 31.91 and an EV to EBITDA of 18.05. The stark contrast in valuations suggests that Jayabharat Cred. may present a compelling investment opportunity. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -26.49% compared to the Sensex's 4.05%, reinforcing the notion that it is undervalued relative to its potential.