Is K Z Leasing overvalued or undervalued?

As of 10 October 2025, K Z Leasing's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its perceived value. The company is currently overvalued, with a PE ratio of -4.46, an EV to EBIT of 5.32, and an ROE of -8.86%. These figures suggest that the company's financial performance is not only weak but also not aligned with its current market valuation.
In comparison to its peers, K Z Leasing's valuation metrics stand out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a more favorable EV to EBITDA of 9.08. The stark contrast in these ratios highlights K Z Leasing's overvaluation in the context of the broader market. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 33.13% compared to the Sensex's gain of 5.58%, further reinforcing the notion that K Z Leasing is overvalued.