Is Northern ARC overvalued or undervalued?

As of 16 October 2025, the valuation grade for Northern ARC has moved from very attractive to attractive. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 15.01, an EV to EBITDA of 11.23, 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 38.01, indicating that Northern ARC is more reasonably priced relative to its earnings. Additionally, Life Insurance, which is rated very attractive, has a lower EV to EBITDA of 9.06, suggesting that Northern ARC is positioned competitively within its sector. Despite a recent stock return of 24.87% year-to-date compared to the Sensex's 6.82%, the valuation metrics suggest that Northern ARC is fairly valued in the current market landscape.