Is One Mobikwik overvalued or undervalued?

As of 14 August 2025, the valuation grade for One Mobikwik has moved from risky to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its financial ratios, including a PE ratio of -14.40, an EV to EBITDA of -10.74, and a ROE of -20.27%. These figures suggest that the company is struggling financially, particularly with negative earnings and a high valuation relative to its earnings potential.
In comparison to its peers, One Mobikwik's valuation stands out unfavorably. For instance, Life Insurance has a PE ratio of 11.53 and an EV to EBITDA of 8.97, indicating a much more attractive valuation. Additionally, Bajaj Finance, while also categorized as very expensive, has a PE ratio of 30.73, which further illustrates how One Mobikwik's metrics are out of line with industry standards. Given these considerations, One Mobikwik is assessed as overvalued, especially in light of its poor stock performance against the Sensex, where it has declined by 61.59% year-to-date compared to a modest 3.15% gain for the index.