Is K Z Leasing overvalued or undervalued?

As of 12 September 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, with a price-to-earnings (PE) ratio of -4.67, a price-to-book value of 0.41, and an EV to EBITDA ratio of 5.11. These figures highlight a concerning financial position, particularly with negative returns on equity (ROE) at -8.86% and negative capital employed impacting its return on capital employed (ROCE).
In comparison to its peers, K Z Leasing stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 35.82 and an EV to EBITDA of 19.41, while Life Insurance boasts a more attractive valuation with a PE of 11.36 and an EV to EBITDA of 8.82. The company's recent stock performance has been lackluster, with a year-to-date return of -29.92%, contrasting with a positive Sensex return of 4.82% over the same period, further emphasizing its overvaluation status.