Is Kapil Raj Financ overvalued or undervalued?

As of 10 October 2025, the valuation grade for Kapil Raj Financ has moved from risky to very expensive. This indicates a significant deterioration in its valuation outlook. The company is currently considered overvalued, with a PE ratio of -44.74, an EV to EBIT of -44.75, and an EV to EBITDA also at -44.75. These negative ratios suggest that the company's earnings are not only underperforming but also indicate potential financial distress.
In comparison to its peers, Kapil Raj Financ stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a PE of 11.65 and an EV to EBITDA of 9.08, both of which are significantly more attractive valuations. Furthermore, the company's stock performance has been dismal, with a year-to-date return of -91.26%, contrasting sharply with the Sensex's positive return of 5.58% over the same period. This stark divergence reinforces the conclusion that Kapil Raj Financ is overvalued in its current state.