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, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued. Key ratios reflect this concern, with a PE ratio of -44.74, an EV to EBIT of -44.75, and a Price to Book Value of 3.30, all suggesting that the company's valuation metrics are not only negative but also significantly higher than those of its peers.
In comparison to its peers, 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 indicating much stronger financial health and valuation metrics. The stark contrast in these ratios underscores the overvaluation of Kapil Raj Financ. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -91.26% compared to a 5.58% return for the Sensex, further reinforcing the notion of overvaluation.