Is NPR Finance overvalued or undervalued?

As of 4 November 2025, NPR Finance's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is assessed as overvalued, with a PE ratio of 34.06, an EV to EBIT of 10.06, and a ROE of 1.02%. Comparatively, Bajaj Finance, another peer, has a higher PE ratio of 37.67 and an EV to EBITDA of 20.06, while Life Insurance stands out as very attractive with a PE of 11.76 and an EV to EBITDA of 9.18.
Despite a strong historical performance over the long term, NPR Finance has underperformed against the Sensex in recent periods, with a year-to-date return of -2.68% compared to the Sensex's 6.81%. This trend reinforces the notion that NPR Finance is currently overvalued in the market.