Is NPR Finance overvalued or undervalued?

As of 31 October 2025, NPR Finance's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 34.35, an EV to EBIT of 10.21, and a Price to Book Value of 0.35. These ratios suggest that while the company is not undervalued, it is also not excessively priced compared to its recent performance.
In comparison to its peers, NPR Finance's PE ratio is lower than Bajaj Finance's 37.23, which is categorized as very expensive, and significantly higher than Life Insurance's attractive PE of 11.62. Additionally, NPR Finance's EV to EBITDA ratio of 10.21 aligns with its fair valuation, while competitors like Bajaj Finserv are considered expensive at 35.03. Despite recent stock performance lagging behind the Sensex, especially over the past month, NPR Finance has shown strong returns over a longer horizon, with a 3-year return of 86.90% compared to the Sensex's 38.18%.