Is Nisus Finance overvalued or undervalued?

As of 7 November 2025, the valuation grade for Nisus Finance has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 24.78, an EV to EBIT of 18.48, and a ROCE of 42.32%.
When compared to peers, Nisus Finance's PE ratio is significantly higher than Life Insurance, which has a PE of 11.44, and also higher than Shriram Finance at 17.7. This suggests that Nisus Finance is trading at a premium relative to its peers, which may not be justified given its recent stock performance, including a year-to-date decline of 28.61% compared to a 6.50% gain in the Sensex. Overall, the combination of high valuation ratios and poor stock performance reinforces the conclusion that Nisus Finance is overvalued.