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 market perception. 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 highlight the company's financial struggles, particularly with a negative ROE of -12.47%, which suggests inefficiency in generating profits from equity.
In comparison to its peers, Kairosoft AI's valuation appears particularly stark. For instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a more attractive PE of 11.49, underscoring the disparity in valuation within the industry. Furthermore, Kairosoft AI's stock has underperformed significantly against the Sensex, with a year-to-date return of -68.71% compared to the Sensex's 7.44%, reinforcing the notion that the company is not only overvalued but also struggling to deliver value to its shareholders.