Is Kapil Raj Financ overvalued or undervalued?

As of 15 October 2025, the valuation grade for Kapil Raj Financ has moved from very expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued, particularly given its troubling financial ratios, including a PE ratio of -4397.88, an EV to EBIT of -43.99, and a ROCE of -1.47%. These figures suggest severe financial distress and a lack of profitability.
When compared to peers, Kapil Raj Financ's valuation stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 37.84 and an EV to EBITDA of 20.12, while Life Insurance boasts a PE of 11.69 and an EV to EBITDA of 9.12. The stark contrast in these ratios underscores the overvaluation of Kapil Raj Financ relative to its more stable competitors. Additionally, the company's stock performance has been dismal, with a year-to-date return of -91.41%, further reinforcing the notion of overvaluation amidst a struggling financial landscape.