Is One 97 overvalued or undervalued?

As of 3 September 2025, the valuation grade for One 97 has moved from very expensive to risky. This indicates a significant shift in perception regarding the company's financial health and market position. Based on the analysis, One 97 appears to be overvalued, particularly given its negative PE ratio of -167.07 and an EV to EBITDA ratio of -107.59, which suggest substantial losses relative to its earnings and cash flows.
In comparison to its peers, One 97's financial metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 32.03, and Life Insurance, with a PE of 11.31. Additionally, One 97's ROCE stands at a concerning -106.87%, highlighting inefficiencies in capital usage. While the stock has outperformed the Sensex with a 1Y return of 116.31% compared to the Sensex's -2.41%, the underlying valuation metrics suggest that investors should exercise caution.