Is Northern ARC overvalued or undervalued?

As of 10 October 2025, Northern ARC's valuation grade has moved from very attractive to attractive. The company is currently considered fairly valued. Key ratios include a PE ratio of 14.98, an EV to EBITDA ratio of 11.22, and a ROE of 8.87%.
In comparison to its peers, Northern ARC's PE ratio is significantly lower than Bajaj Finance, which stands at 36.56, indicating that Northern ARC may be more reasonably priced. Conversely, Life Insurance, which is rated very attractive, has a PE of 11.65, suggesting that Northern ARC is competitively positioned within its industry. Notably, Northern ARC's stock has underperformed the Sensex over the past week, but it has shown a strong year-to-date return of 24.61%, outperforming the Sensex's 5.58% during the same period.