Is K Z Leasing overvalued or undervalued?

As of 17 October 2025, K Z Leasing's valuation grade has moved from risky to very expensive, indicating a significant concern regarding its current valuation. The company is deemed overvalued, primarily due to its troubling financial ratios, including a PE ratio of -4.07, a Price to Book Value of 0.36, and a ROE of -8.86%. These figures suggest that the company's earnings are negative, which is a red flag for potential investors.
When compared to peers, K Z Leasing stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance shows a more attractive valuation with a PE of 11.49 and an EV to EBITDA of 8.94. The stark contrast in these ratios reinforces the conclusion that K Z Leasing is overvalued in its sector. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -38.95% compared to the Sensex's 7.44%, further highlighting the challenges it faces in the current market environment.