Is Morarka Finance overvalued or undervalued?

As of 7 November 2025, Morarka Finance has moved from a fair to an expensive valuation grade. The company is currently overvalued based on several key financial ratios. The PE ratio stands at 23.55, while the EV to EBITDA ratio is also at 23.61. Additionally, the Price to Book Value is notably low at 0.04, which typically indicates undervaluation, but in this context, it suggests a misalignment with the overall valuation grade.
When compared to peers, Morarka Finance's valuation appears less attractive. For instance, Bajaj Finance is categorized as very expensive with a PE ratio of 38.09, while Life Insurance is very attractive at a PE of 11.44. This highlights the disparity in valuation within the sector. Furthermore, the company's recent stock performance has been underwhelming, with a year-to-date return of -36.47%, contrasting sharply with the Sensex's gain of 6.50% during the same period, reinforcing the notion that Morarka Finance is currently overvalued.