Is Minolta Finance overvalued or undervalued?

As of 14 November 2025, the valuation grade for Minolta Finance has moved from very expensive to risky. This suggests a significant deterioration in the company's perceived value. The company appears to be overvalued, particularly given its negative PE ratio of -2.19 and an EV to EBIT of -26.42, indicating substantial losses relative to its enterprise value. Additionally, the ROE stands at a concerning -52.23%, reflecting inefficiencies in generating profit from shareholders' equity.
When compared to peers, Minolta Finance's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 34.62, and Life Insurance, which boasts a PE of 11.25. These comparisons highlight that Minolta Finance is not only underperforming but also carries a higher risk profile relative to its competitors. The recent stock performance has been dismal, with a one-year return of -86.98%, significantly underperforming the Sensex's return of 9.00%, further reinforcing the notion that Minolta Finance is overvalued in the current market context.