Is Morarka Finance overvalued or undervalued?

As of 7 November 2025, Morarka Finance has moved from fair to expensive in its valuation grade. The company is currently overvalued based on its financial metrics. The PE ratio stands at 23.55, while the EV to EBIT and EV to EBITDA ratios are both at 23.61, indicating a high valuation relative to earnings. Additionally, the Price to Book Value is notably low at 0.04, which typically suggests undervaluation, but in this context, it highlights the disparity in the company's overall valuation.
When compared to peers, Morarka Finance's valuation appears less favorable. For instance, Bajaj Finance is categorized as very expensive with a PE of 38.09, while Life Insurance is seen as very attractive with a PE of 11.44. The PEG ratio for Morarka Finance is 0.00, indicating no growth expectations, which further supports the conclusion of overvaluation. Despite a recent stock return of 2.27% over the past week, the longer-term performance shows a decline of 40.17% over the past year, contrasting sharply with the Sensex's 4.62% return, reinforcing the notion that Morarka Finance is currently overvalued.