Is One 97 overvalued or undervalued?

As of 14 August 2025, the valuation grade for One 97 has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently deemed overvalued, with a PE ratio of -149.32, an EV to EBITDA of -94.01, and a Price to Book Value of 4.89. These ratios reflect severe financial distress, particularly highlighted by a ROCE of -106.87% and a ROE of -9.78%, which are alarming indicators of profitability and operational efficiency.
In comparison to its peers, One 97 stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 30.73 and an EV to EBITDA of 17.64, while Life Insurance boasts a PE ratio of 11.53 and an EV to EBITDA of 8.97, both of which are considerably more attractive. The stark contrast in these metrics suggests that One 97's valuation is not justified relative to its competitors. Despite a strong recent performance against the Sensex, with a 1-year return of 113.17% compared to the Sensex's 1.89%, the underlying financial ratios indicate that the stock is not a sound investment at its current price of 1150.25.