Is Kairosoft AI overvalued or undervalued?

As of 23 October 2025, Kairosoft AI's valuation grade has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its financial metrics, with a PE ratio of -1.22, an EV to EBITDA of 2.24, and a negative ROE of -12.47%. These figures suggest that Kairosoft AI is struggling to generate profits and is facing challenges in its operational efficiency.
When compared to peers, Kairosoft AI's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 39.07, while Life Insurance boasts a more attractive PE of 11.68. The stark contrast in these ratios highlights Kairosoft AI's difficulties in the market. Furthermore, the company's stock performance has been notably poor, with a year-to-date return of -67.84%, significantly underperforming the Sensex's gain of 8.21% during the same period. This combination of negative financial indicators and poor market performance reinforces the conclusion that Kairosoft AI is overvalued.