Is Lead Financial S overvalued or undervalued?

As of 7 November 2025, Lead Financial S has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its PE ratio of 29.09, which is significantly higher than peers like Bajaj Finance at 38.09 and Life Insurance at 11.44. Additionally, the EV to EBITDA ratio stands at 4.71, which is in line with its own valuation but does not provide a compelling case for investment when compared to more attractively valued peers.
The company's ROCE is at 6.63% and ROE at 3.46%, suggesting that it is not generating sufficient returns relative to its valuation. Furthermore, the PEG ratio of 0.00 raises concerns about growth expectations not being met. Recent stock performance shows a decline of 23.10% year-to-date, contrasting sharply with the Sensex's gain of 6.50% in the same period, further reinforcing the notion that Lead Financial S is overvalued in the current market environment.