Is K Z Leasing overvalued or undervalued?

As of 10 October 2025, the valuation grade for K Z Leasing has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of -4.46, an EV to EBIT of 5.32, and a ROE of -8.86%. These ratios suggest that the company is struggling financially, particularly with negative capital employed, which further complicates its valuation.
In comparison to its peers, K Z Leasing's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a PE of 11.65 and an EV to EBITDA of 9.08, both indicating a healthier financial position. Additionally, K Z Leasing's recent stock performance has been disappointing, with a year-to-date return of -33.13%, significantly underperforming the Sensex's gain of 5.58% in the same period. This combination of poor financial ratios and weak stock performance reinforces the conclusion that K Z Leasing is overvalued.