Is K Z Leasing overvalued or undervalued?

As of 14 August 2025, K Z Leasing's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company is currently overvalued, as evidenced by its negative PE ratio of -5.46, an EV to EBITDA of -6.01, and a ROCE of -9.83%. These figures highlight the company's struggles in generating profits and returns on capital.
In comparison to its peers, K Z Leasing's valuation metrics starkly contrast with Life Insurance, which has a PE ratio of 11.53 and an EV to EBITDA of 8.97, categorizing it as very attractive. Other peers like Bajaj Finance and Bajaj Finserv are also marked as very expensive with PE ratios of 30.73 and 32.28, respectively. This peer comparison underscores K Z Leasing's unfavorable position in the market. Despite a recent positive stock performance relative to the Sensex over the past week and month, the long-term outlook remains concerning, as the company has underperformed the Sensex year-to-date and over the past year.