Is Kairosoft AI overvalued or undervalued?

As of 17 October 2025, Kairosoft AI's valuation grade has moved from risky to expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of -1.19, an EV to EBIT of 2.22, and an EV to EBITDA of 2.27. These ratios suggest that the company's financial performance is not only underwhelming but also reflects negative capital employed, which is concerning for investors.
When compared to peers, Kairosoft AI stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a much more attractive PE of 11.49. The stark contrast in these ratios highlights the overvaluation of Kairosoft AI relative to its industry. Additionally, the company's recent stock performance has been dismal, with a year-to-date return of -68.71%, significantly lagging behind the Sensex's 7.44% return in the same period, further reinforcing the notion that Kairosoft AI is not a sound investment at its current price of 49.98.